Did You Know: FMCG and Q1 round-up
PackMan has been doing a fair amount of reading this summer. Here’s what PackMan unpacked about the Indian FMCG sector.
20 Apr 2026 | 150 Views | By Jiya Somaiya
Did You Know: The mixed landscape of the FMCG sector
During one of PackMan’s newspaper-reading mornings, PackMan found out that the Indian FMCG sector is heading toward a steady March quarter, driven by volume growth. While rural demand has stabilised and urban markets are gradually recovering, the industry seems to be facing a mixed landscape. Stable raw material costs for most of the quarter have supported profit margins, but a recent rise in the price of crude-linked materials like packaging could create new pressure.
Let’s look at some instances. Hindustan Unilever is expected to see mid-single-digit revenue growth supported by a 4-5% increase in volume, with its beauty and wellbeing segments performing particularly well. Similarly, Nestle India is anticipating double-digit revenue growth from strong domestic demand, though high coffee inflation may tighten its margins. Britannia is also projected for double-digit growth as it offers more product weight in its popular low-priced packs to attract value-conscious buyers.
Some companies face more specific hurdles. For instance, ITC is seeing resilience in its food and agriculture sectors, but its cigarette business is under pressure from flat volumes and higher taxes.
Did You Know: Dabur is facing a stock price drop of over 17%
PackMan read that Dabur gets nearly 50% of its sales from rural India. Fears of a weak monsoon and rising fertiliser prices threaten farm incomes, which would impact Dabur’s sales more than competitors like Nestle. In addition, the conflict in West Asia is disrupting Dabur’s largest international market — the Middle East and North Africa (MENA) region, which accounts for 8% of its revenue. Shipping delays, higher insurance, and order cancellations are making global operations difficult and expensive.
Did You Know: PepsiCo — India crowned top performer for international business
PepsiCo reported India as a top performer for its international business in the first quarter of 2026. The company’s global convenient foods (snacks) division saw 6% organic revenue growth, while its beverage division grew by 4.5%. It seems to PackMan that a lot of Indians have been snacking over the winter-spring quarter, because specifically in the Asia-Pacific region, snack volumes jumped 9%, driven mostly by high demand in India and China.
Did You Know: Rural India is shopping premium
PackMan recently undertook some summer travel around India, and found out that rural shoppers are no longer sticking to essentials; they are now buying premium goods at a faster rate than urban consumers. This shift is being fueled by small, affordable packs that make high-end brands accessible. According to data from Worldpanel by Numerator, rural India’s share of the super premium market jumped from 30% in 2021 to 42% in 2025. Rural spending in this category has grown by 7% annually over the last five years, outperforming the 4% growth seen in cities. In addition, today, rural areas provide 51% of all FMCG sales in India, making them the primary driver for the industry.
Did You Know: Investors investin’ no more
Over the summer break, PackMan overheard investors discussing how they are increasingly pulling away from major FMCG stocks, causing the sector’s valuation to hit a six-year low. The Nifty FMCG Index is currently trading at 38.8 times its earnings, a sharp drop from 43.9 just a year ago. This represents the lowest valuation for the industry since the start of the pandemic in early 2020.
PackMan is noting that while the broader stock market has remained relatively stable, FMCG companies have lost their valuation premium. A year ago, these stocks were valued at over double the price of the average Sensex stock; that gap has now narrowed significantly.
Did You Know: ITC Fiama is lathering up its premium reach, targeting INR1,000-crore revenue within two years, up from its current INR 750–800-crore.
Did You Know: India’s craft and premium beer segment is accelerating rapidly, and is projected to approach a USD 1-billion market by FY27, up from an estimated USD 600-million in FY26.
Did You Know: Swelect Energy Systems is evaluating entry into the solar wafer manufacturing business within the next six months, viewing it as relatively easier than cell manufacturing.
Did You Know: Hocco Ice Cream was recently valued at INR 2,500-crore after its INR 100 crore fundraise from Sauce.vc, now targets crossing INR 1,000-crore in net revenues by FY27-end.
Did You Know: The West Asia conflict has triggered major cost pressures for the dairy industry, causing polymer-based packaging costs to spike by about 47% and glass costs to surge by approximately 45%. Input costs for the packaging industry, such as PP woven fabric, HDPE, BOPP film, and PP laminates, have sharply risen by 60–80% in recent weeks due to disrupted global supply chains.