Dabur, Godrej say demand holds firm despite cost pressures

Fast-moving consumer goods makers Dabur and Godrej Consumer Products said on Friday that consumer demand remained resilient in the first quarter of fiscal 2027 despite geopolitical uncertainty and crude-led input cost inflation.

“Across the FMCG industry, we have seen an acceleration in value growth with the demand environment remaining stable, aided by continued momentum across the broader global economy and consumer sentiment holding up despite crude-led input cost inflation," Godrej Consumer Products said in an exchange filing, adding that input costs had begun easing in the closing weeks of the quarter, improving sentiment.

The company said it has taken calibrated pricing actions across its portfolio to mitigate the high raw material costs, while Dabur took price hikes in its hair care segment to support margins. Despite this, business fundamentals remain strong according to both companies.


“Despite the challenging geopolitical backdrop and hyperinflationary pressures across our key markets, consumer sentiments remained resilient, with business trajectory improving sequentially, quarter on quarter,” Dabur said in its quarterly update.

For the quarter, Godrej Consumer said it expects to deliver high-teens revenue growth on a consolidated level, backed by strong high single digit volume growth, although margins may take a hit due to cost pressures. Dabur said it expects both revenue and profit to grow at double digit levels.

Godrej Consumer flagged the present climate conditions as a threat to demand. “We remain mindful that El Niño conditions can heighten weather volatility across our key markets, with the potential to disrupt agricultural output and rural demand,” the company said.

Earlier this week, Marico had also pointed to steady demand trends but cautioned that inflationary trends and the impact of El Niño could pose a dampening factor in the coming quarters.

The companies’ international businesses have also improved on the back of cooling conditions in West Asia.

“With the Middle East situation expected to ease, we remain optimistic about improving consumption across our international markets in the coming quarters,” said Dabur.

For Godrej Consumer, its Africa, USA and Middle East markets delivered double-digit sales growth with strong volume growth. Dabur expects its international business to post high-teen growth, with markets like Egypt, Turkey, Bangladesh and the UK recording double-digit sales growth.