US-Iran war: FMCG firms report strong Q4 growth despite tensions
What's the story
Leading fast-moving consumer goods (FMCG) companies have posted strong growth in the March quarter of FY26, despite geopolitical tensions in the Middle East. Companies like Marico, Dabur, and AWL Agri Business (formerly Adani Wilmar) have reported volume and value growth. This is mainly due to pricing strategies, category momentum, resilient domestic consumption and international market expansion (excluding conflict zones).
Company performance
Marico's revenue growth driven by pricing interventions
Marico, a major player in the FMCG space, reported a low twenties year-on-year growth in its consolidated revenue for the quarter. The growth was driven by pricing interventions, strong hair oils performance, and international business traction. The company's India business saw high-single-digit volume growth while overseas operations grew in high-teens (in constant currency terms), despite geopolitical headwinds affecting the Gulf region.
Market dynamics
Dabur projected to report mid-single-digit revenue growth
Dabur reported a more moderate performance with consolidated revenue growth projected in mid-single digits for the March quarter. The company witnessed a sequential recovery in domestic demand, with its India FMCG business likely to record high single-digit growth. However, geopolitical tensions in West Asia disrupted demand and supply chains for some of Dabur's key international markets.
Retail expansion
AWL Agri Business reports robust growth in alternate retail channels
AWL Agri Business, which owns edible oil and staples brands Fortune and Kohinoor rice, reported strong growth in alternate retail channels. E-commerce, quick commerce and modern trade delivered a whopping 43% YoY growth in Q4'26. The company's food and FMCG portfolio (excluding staples like rice and wheat) expanded by 30% YoY while its edible oil segment recorded a robust 17% volume growth.