/images/ppid_59c68470-image-178342756480738679.webp)
/images/ppid_59c68470-image-17834250353287502.webp)
What is the story about?
India's consumption recovery gathered pace in the first quarter of FY27, with consumer-facing companies across fast-moving consumer goods (FMCG), retail, jewellery and discretionary segments reporting stronger sales growth, improving volumes and resilient demand despite temporary pressure on margins.
Early business updates from listed companies indicate that consumer spending is recovering across both essential and discretionary categories after several subdued quarters. The improvement has been driven by a combination of higher volumes and calibrated price increases, suggesting that the recovery is becoming increasingly broad-based even as companies remain watchful of input cost inflation.
The Marico sector delivered one of its strongest quarters in recent years. Godrej Consumer Products, Dabur and Avenue Supermarts reported revenue growth ranging from the high teens to the low twenties, supported by healthy volume expansion. Marico posted double-digit volume growth, while Godrej Consumer recorded high single-digit volume growth and Dabur reported mid- to high-single-digit volume growth.
Although higher input costs continued to weigh on profitability for some companies, most indicated that the pressure was temporary. Marico benefited from lower copra prices, which supported a sequential improvement in gross margins. Dabur expects its calibrated price hikes to keep EBITDA margins stable, while Godrej Consumer projected gradual margin improvement through FY27 alongside continued double-digit EBITDA growth.
Retailers also reported healthy sales momentum. V-Mart Retail posted revenue growth of around 15%, while Trent recorded nearly 19%, despite marginally missing analysts' expectations.
Value retailers continued to outperform the broader market, reflecting sustained demand in the affordable segment. Baazar Style Retail and V2 Retail reported revenue growth of 23% to 29%, while Senco Gold delivered a 58% increase in sales, supported by healthy same-store sales growth and continued store expansion.
Jewellery retailers also benefited from relatively stable gold prices during the quarter.
Kalyan Jewellers reported revenue growth of around 60% on a lower base, while Titan's posted growth of 38%. Jubilant FoodWorks jewellery business, led by its Tanishq, Zoya and Mia brands, recorded 39% growth despite a strong base in the corresponding period last year.
The discretionary Nykaa segment also showed improving demand trends. Jubilant FoodWorks reported consolidated revenue growth of 14%, while standalone revenue rose 9.2%. The company also reported sequential improvement over the previous quarter.
Nykaa continued to witness robust demand, with consolidated gross merchandise value growing in the early 30% range. Its beauty business expanded in the high twenties, while the fashion business emerged as a key growth driver after its partnership with Nike helped drive net sales value growth into the mid-50%, marking a multi-quarter high.
While input cost pressures remain a near-term risk for some companies, the first-quarter business updates point to improving consumer confidence across categories. Stronger volumes in FMCG, sustained momentum in value retail and jewellery, and healthier discretionary spending suggest India's consumption recovery is gaining breadth as FY27 begins.
Early business updates from listed companies indicate that consumer spending is recovering across both essential and discretionary categories after several subdued quarters. The improvement has been driven by a combination of higher volumes and calibrated price increases, suggesting that the recovery is becoming increasingly broad-based even as companies remain watchful of input cost inflation.
The Marico sector delivered one of its strongest quarters in recent years. Godrej Consumer Products, Dabur and Avenue Supermarts reported revenue growth ranging from the high teens to the low twenties, supported by healthy volume expansion. Marico posted double-digit volume growth, while Godrej Consumer recorded high single-digit volume growth and Dabur reported mid- to high-single-digit volume growth.
Although higher input costs continued to weigh on profitability for some companies, most indicated that the pressure was temporary. Marico benefited from lower copra prices, which supported a sequential improvement in gross margins. Dabur expects its calibrated price hikes to keep EBITDA margins stable, while Godrej Consumer projected gradual margin improvement through FY27 alongside continued double-digit EBITDA growth.
Retailers also reported healthy sales momentum. V-Mart Retail posted revenue growth of around 15%, while Trent recorded nearly 19%, despite marginally missing analysts' expectations.
Value retailers continued to outperform the broader market, reflecting sustained demand in the affordable segment. Baazar Style Retail and V2 Retail reported revenue growth of 23% to 29%, while Senco Gold delivered a 58% increase in sales, supported by healthy same-store sales growth and continued store expansion.
Jewellery retailers also benefited from relatively stable gold prices during the quarter.
The discretionary Nykaa segment also showed improving demand trends. Jubilant FoodWorks reported consolidated revenue growth of 14%, while standalone revenue rose 9.2%. The company also reported sequential improvement over the previous quarter.
Nykaa continued to witness robust demand, with consolidated gross merchandise value growing in the early 30% range. Its beauty business expanded in the high twenties, while the fashion business emerged as a key growth driver after its partnership with Nike helped drive net sales value growth into the mid-50%, marking a multi-quarter high.
While input cost pressures remain a near-term risk for some companies, the first-quarter business updates point to improving consumer confidence across categories. Stronger volumes in FMCG, sustained momentum in value retail and jewellery, and healthier discretionary spending suggest India's consumption recovery is gaining breadth as FY27 begins.
