FMCG Q3 Sees Uptick In Food Biz; Home & Personal Care Face Disruption

The Q3 FY26 of the Fast Moving Consumer Goods (FMCG) sector witnessed steady demand trends during the period. Listed FMCG heavy weights remain optimistic about a gradual improvement in consumption in the quarters ahead, supported by easing inflation, lower GST rates driving affordability, MSP hikes, and a healthy crop sowing season.

According to Emkay Global Financial Services, food companies are better placed in Q3 with likely double-digit growth, while home care/personal care companies would face disruption from the GST-related impact in Oct, causing growth to slow down.

In the preliminary update note on the standalone performance of Q3, Dabur India witnessed early signs of demand recovery, aided by GST rate revisions. "In the month of October 2025, distributors and retailers focused on liquidating the existing higher-priced inventory in the channel. Post trade stabilisation, consumer sentiment improved in urban and rural areas. Rural demand continued to outperform urban demand this quarter as well," Dabur said in an exchange filing.

Within the India business, Dabur expects home & personal care business to grow in double digits on the back of strong growth in hair oils and oral care category. Within F&B, the culinary business is expected to record double-digit growth. In beverages, nectars & drinks portfolio is expected to report muted performance due to adverse seasonality. Overall, the company expects consolidated revenue to grow in the mid-single digits with operating profit and profit after tax to grow ahead of revenue. In International business, key geographies like MENA, Turkey, Namaste and Bangladesh have performed well, the statement added.

In Q3, Marico maintains its aspiration of delivering sustainable and profitable volume-led growth over the medium term, enabled by the strengthening brand equity of its core franchises and scale up of new engines of growth across markets.

For Marico, during the quarter, underlying volume growth in the India business remained in high single digits, while marking a slight improvement on a sequential basis. Parachute recorded a marginal volume decline amid elevated input cost and pricing conditions. Saffola Oils had a muted quarter while value added hair oils grew in the twenties, reinforcing sustained traction in the franchise.

"We expect to maintain the double-digit growth momentum in this franchise over the near and medium term, supported by the strategic focus in the mid and premium segments of the portfolio, enhanced direct reach driven by Project SETU and the recent GST rate rationalization. Foods had a benign quarter and is expected to revert to accelerated growth over the next two quarters, while premium personal care (including digital-first brands) continued to scale ahead of aspirations," Marico stated in its operational update prior to Q3 results.

Marico's international business maintained its momentum with constant currency growth in the early twenties, as Bangladesh led from the front, while Vietnam and South Africa bounced back to double-digit growth on the back of targeted initiatives.

AWL Agri Business Limited (formerly Adani Wilmar Ltd.), during the quarter ended on 31st December 2025, recorded a low single digit growth in volumes. Growth during the quarter was primarily led by uptick in both edible oil and food & FMCG segments. However, the overall volumes were dragged down by de-growth in castor and de-oiled cakes classified under the Industry Essentials segment. Festive demand was relatively subdued during the quarter as trade continued to operate with lean inventory levels. The food & FMCG business has shown a gradual recovery over recent quarters with improved offtake, on the back of multiple interventions and improvements in the rice business.

Emkay analyst Nitin Gupta, noted, "Given the fast inventory turns for foods, growth accelerated over Oct-Nov, with retailers restocking inventory. However, home- and personal-care categories have seen gradual disruption, along with limited restocking. Overall restocking of inventory looks unlikely, as the trade channel views this as an opportunity to improve RoI. Winter loading was delayed from Q2, with select players seeing benefits in Q3."

Gupta believes food players would see recovery in their margin profile as margins were hit by inflationary palm oil earlier. "Growth trends ahead would be key, given that multiple tailwinds are in place," added the financial report.

The CII FMCG summit held in December 2025, noted that the industry is well positioned to benefit from the resurgence in consumer demand, supported by an evolving ecosystem of nascent brands that leverage emerging consumer needs and e-commerce channels. As GST reduces compliance costs for organized players and, over time, eases pressure on consumer wallets, it creates a favorable backdrop for consumption growth and strengthens the overall value proposition. However, traditional players need to have a sharper focus on faster innovation, technology adoption, and investment in R&D.