Summary:

In the final quarter of FY25, the Fast-Moving Consumer Goods (FMCG) sector witnessed rural markets outperforming their urban counterparts, a trend underscored by key industry players such as Dabur, Marico and AWL Agri Business (formerly Adani Wilmar), who pointed to stronger rural consumption, especially in food-related categories. Meanwhile, urban demand remained tepid, weighed down by ongoing food inflation, which in turn dampened overall FMCG volume growth. While modern trade, e-commerce and quick commerce channels sustained robust momentum, traditional retail formats particularly Kirana stores faced headwinds. Notably, AWL Agri Business reported a year-on-year surge of over 100% in quick commerce sales, marking its strongest performance in two years. This upswing was attributed to a more refined product mix, enhanced stock availability and targeted promotional strategies.

Although Dabur anticipates a decline in Q4 revenue alongside a contraction of 150–175 basis points (bps) in operating margins, the company maintains a positive outlook for FY26, underpinned by expectations of moderating inflation and a favourable monsoon. Marico, owner of brands such as Saffola and Parachute, reported steady demand and a mixed response across premium and massmarket urban segments. On the international front, both firms are projecting double-digit growth. Dabur foresees solid contributions from the Middle East and North Africa (MENA), Egypt and Bangladesh markets expected to account for approximately 25% of its total revenue. Marico, for its part, recorded mid-teen growth in constant currency across its overseas operations. Despite ongoing margin pressures, both companies remain steadfast in their commitment to driving profitable growth by investing in brand equity, improving operational efficiency and strengthening market penetration strategies.

Source: IBEF

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