India’s FMCG sector (fast-moving consumer goods) saw signs of recovery in the first quarter of FY26. This was mostly due to better demand in cities, and the updates from Dabur and Godrej Consumer Products Ltd (GCPL) reflect this trend.
Dabur India gave a mixed update. The company expects low single-digit revenue growth, but its operating profit may grow a little slower. This is mainly because the beverage segment performed poorly, as unseasonal rains and a short summer hurt sales.
Still, Dabur’s core categories did well. Its Home & Personal Care (HPC) products like Dabur Red Toothpaste, Odonil, and Gulabari gained market share. The healthcare segment also showed strong numbers — with products like Hajmola, Honitus, Dabur Honey, and Health Juices growing in double digits. Honitus stood out with over 40% growth compared to last year.
In international markets, Dabur saw double-digit growth in places like MENA, Turkey, Bangladesh, and the US. Even in beverages, some products like Activ Juices and Coconut Water still grew in the mid-teens range.
After the update, Dabur’s share price jumped 3.8%, reaching ₹514.35 on the NSE.
On the other hand, Godrej Consumer Products (GCPL) gave a stronger update. The company expects double-digit revenue growth for Q1 FY26, showing good demand. In India, it expects high single-digit value growth and mid single-digit volume growth.
GCPL’s EBITDA margin (profit before interest and taxes) might be slightly below expectations for this quarter but is likely to improve in the second half of the year. One big reason is that palm oil prices are coming down — this helps reduce costs, as palm oil is a key ingredient in many of GCPL’s products.
Following this, GCPL shares rose nearly 6%, hitting ₹1,264.
In short, both companies showed that urban demand is rising again, especially in health, personal care, and household products. While Dabur faced problems in beverages, its core segments stayed strong. GCPL had broad-based growth and expects better profit margins in the coming months.
The stock market reacted positively to both updates, showing that investors trust their strategies and believe the FMCG sector is slowly recovering.