Indian FMCG firms plan Q2 price hikes

Leading Indian FMCG companies are signaling further price increases in the September quarter as commodity inflation, crude oil volatility, and geopolitical uncertainties keep input costs elevated. The sector, which implemented average price hikes of 2-5% in the June quarter, is resorting to calibrated increases and shrinkflation to protect margins. Britannia Industries expects to add another 1.5-2% in pricing through shrinkflation in its Rs 5 and Rs 10 biscuit packs due to higher sugar and palm oil prices. Godrej Consumer Products, which raised prices by around 5% in Q1, may implement a similar hike in Q2 but is waiting for clarity on commodity costs. Dabur plans calibrated price hikes and expects double-digit revenue growth in FY27, though volumes may be under pressure. Unilever — Hindustan Unilever expects sequential inflation of 2-5% in the September quarter and will continue calibrated pricing actions. Godrej Consumer Products may make further pricing interventions if needed, while Nestlé India flagged inflationary and geopolitical risks, warning that consumption could moderate in the short term. Companies remain optimistic about resilient consumption and premiumisation, but are watchful of crude oil prices, the monsoon, and El Niño–Southern Oscillation.