India’s largest Consumer Packaged Goods companies are projecting good news to the stock market
Dabur: The company expects double-digit growth in its Home and Personal Care segment, particularly in hair oils and oral care. Management anticipates consolidated revenue to grow in the mid-single digits, with operating profit and net profit expected to outpace revenue growth due to market share gains.
Godrej Consumer Products Ltd (GCPL): Reporting a progressive strengthening of domestic demand, GCPL projects consolidated revenue growth near 10% The company attributes this to easing inflation and better affordability resulting from lower GST rates.
Marico: Owner of brands such as Saffola and Parachute, Marico expects consolidated revenue growth in the high twenties for the quarter. The company reported high single-digit volume growth in India on the back of rapid growth in rural sales.
According to recent quarterly updates, the sector anticipates improvement in revenue growth, supported by the stabilization of the Goods and Services Tax (GST) framework, robust festive demand, and a decline in raw material costs.
Consumer sentiment has improved in both urban and rural markets. Notably, rural demand continues to outpace urban consumption. Distribution channels also show a clear shift; organized retail remains strong, while e-commerce and hyperlocal delivery platforms are expanding at double-digit rates.
The retail sector similarly mirrors this momentum. Trent, a Tata Group entity operating Westside and Zudio, reported standalone revenue of over $600 million representing a 17% increase. Avenue Supermarts (D-Mart) saw revenue from operations rise by 13% to over $2 billion with a consolidated net profit of approximately $100 million.
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