Mumbai: Consumer goods makers Dabur India Ltd and Godrej Consumer Products Ltd (GCPL) said global inflationary pressures and the return of El Niño pose risks to demand and supply chains, but maintained that their businesses remain resilient and are on track to deliver healthy revenue growth in the June quarter.
The commentary from two of India’s largest fast-moving consumer goods (FMCG) companies comes amid rising input costs driven by geopolitical tensions and concerns that below-normal rainfall could hurt farm output and rural consumption, two key factors for the sector.
The India Meteorological Department (IMD) warned that conditions are strengthening over the equatorial Pacific and are expected to impact the Southwest Monsoon, resulting in lower rainfall.
“Despite the challenging geopolitical backdrop and hyperinflationary pressures across our key markets, consumer sentiment remained resilient, with business trajectory improving sequentially, quarter-on-quarter,” said in an exchange filing on Friday.
At a consolidated level, Dabur expects revenues to record double-digit growth in the quarter. For the full FY26 financial year, the company reported 5% revenue growth at ₹13,193 crore, while annual net profit increased 7.4% to ₹1,869 crore.
“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, though our geographically diversified sourcing and portfolio provide meaningful resilience against such volatility and as such we don’t foresee any major impact,” Godrej Consumer Products Ltd said in an exchange filing on Friday.
At a consolidated level, GCPL expects to deliver high-teens revenue growth in Q1 FY27, ahead of its full-year guidance of double-digit revenue growth, and strong high single-digit underlying volume growth.GCPL reported consolidated revenue from operations rising 8.4% to ₹15,177.9 crore in FY26.
After the Iran-US war broke out in February 2026, prices of raw material like crude, plastic, surfactants (used in soaps) and vegetable oils have risen, in turn spiking inflation in India.
Consumer Price Index (CPI), the measure of retail inflation, increased to a 16-month high of 3.9% in May as food prices rose, according to data from the ministry of statistics and programme implementation (MoSPI) released on 12 June 2026.
The FMCG sector maintained steady revenue growth during the June quarter despite some weakness in the general trade channel, analysts at Anand Rathi said in a 30 June report.
Dabur added that elevated inflation during the quarter, particularly within the haircare segment, resulted in calibrated price actions, to support operating margins. Profit after tax is expected to grow at a double-digit level for Dabur.
GCPL said that on the commodity front, input costs remained elevated through most of Q1 but have begun to ease in the closing weeks of the quarter. The company has also taken calibrated pricing actions, strong delivery on cost-savings programmes, and prudent media optimization to improve its margins in the year.
Shares of Dabur moved down 0.67% to ₹444 and shares of GCPL rose 0.07% to ₹1,078 on the National Stock Exchange on Friday, even as the benchmark Nifty 50 closed up 0.39%.