FMCG Index Surges 2.5% Ahead of Q4 Earnings, Hindustan Unilever Leads Gains Amid Price Increases

FMCG Index Rises 2.5 Percent for Third Straight Session

The FMCG index continued its upward trend on Friday, advancing by 2.5 percent. This marks the third consecutive session of gains, with the index having risen by more than 4 percent over the past three sessions.

Within the sectoral indices, the Nifty FMCG index emerged as the top performer, climbing by over 2 percent. All its constituents traded in the green, with several companies posting significant gains. Hindustan Unilever led the pack, with its shares climbing 5 percent to become the top gainer on the benchmark Nifty50 index. Other FMCG majors such as Nestle India, ITC, and Tata Consumer Products also saw their shares rise by 1.5-2 percent.

The price hikes by Hindustan Unilever are reportedly due to the company passing on higher raw material and packaging costs to consumers. According to a report by The Times of India, the increase ranges between Re 1 and Rs 20 across its soap portfolio.

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Demand conditions have improved following the implementation of GST 2.0, although supply concerns due to the US-Iran war remain a key risk. An analysis by CNBCTV-18 suggests that this is the first quarter when companies will see the full benefit of GST-led lower-priced products in the fourth quarter.

Rural demand is showing signs of recovery, with the earlier wide gap between price and volume normalising. However, unseasonal rains in North and West India in March impacted summer categories.

Supply concerns persist, with Brent crude prices rising 75-80 percent month-on-month in March 2026 in rupee terms, which is expected to impact packaging costs fully in the first quarter of FY27. Additionally, concerns over LPG shortages could affect supply in some categories.

| Expected Price Hikes in FY27 | | --- | --- | | Overall FMCG | 3-4% | | Paints | 6-10% | | Edible Oils | 6-10% |

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FMCG companies have reported strong business updates, indicating that demand remains steady. Godrej Consumer Products expects double-digit sales growth and high single-digit volume growth, with its shares trading over 2 percent higher at Rs 1,104.20 on the NSE. Marico sees consecutive revenue growth and high single-digit volume growth, with its shares up 1.7 percent at Rs 757.40. Dabur India is expected to post high single-digit business growth, with its shares rising up to 4 percent.

Beyond staples, the retail sector also showed strength. Avenue Supermarts is eyeing 19 percent revenue growth, while Trent is targeting 20 percent revenue growth. V-Mart may see 24.5 percent revenue growth.

In the jewellery segment, Titan saw 46 percent revenue growth, while Kalyan Jewellers has reported 65 percent revenue growth.