HUL<\/a>, ITC<\/a>, Nestle, Marico<\/a>, and Godrej Consumer Products<\/a> were among companies reporting mixed earnings in the quarter ended March 2026, benefiting from cuts in goods and services tax rates last year and premiumisation trends.<\/p>\n
\u201cExcept for the general environmental concerns, we are not seeing any specific concerns yet,\u201d Falguni Nayar, managing director at FSN E-Commerce Ventures<\/a>, the parent of beauty and fashion retailer Nykaa, said on a recent earnings call. \u201cI would like to remind everyone that our consumption categories are small luxuries. And as a result, their consumption is not as impacted during tougher times.\u201d<\/p>\n Some caution<\/strong>![\"Screenshot](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/07\/et-logo.jpg\" "\\"Screenshot"){kind=logo}
Cost Factor at Play for Cos
<\/strong>The start of the Iran war from February 28 however began stirring inflationary pressures in the Indian economy, starting April, largely due to supply chain disruptions, particularly for energy supplies, which impacts packaging, freight, and raw material costs for makers of personal care and packaged foods.![\"ET](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/06\/118783427.cms.png\")
Live EventsMeenesh Shah, chairman at Mother Dairy and National Dairy Development Board (NDDB), said he doesn\u2019t see any significant drop in consumption patterns. \u201cIndia is at a stage where most dairy products, whether cheese, yogurts or ice-creams, are seeing growth of 25%-plus,\u201d he said. \u201cIf there is sustained inflation pressure, there could be some impact, but in the short term, for select income groups.\u201d
Most packaged goods makers raised prices by 3-8% or reduced grammages in packs to offset rising fuel and commodity costs. Company executives said demand is holding up as of now, adding that the impact on household consumption may be felt with a lag effect but among price-sensitive consumers.
\u201cWhile near-term cost headwinds may emerge, the long-term fundamentals of India’s consumption story remain strong, and we remain confident in the underlying demand outlook,\u201d said Tarun Arora, CEO at Zydus Wellness<\/a>, which makes Complan health drink and Everyuth Naturals skincare. \u201cIf geopolitical pressures persist over the next few quarters, the larger concern is likely to be cost inflation\u2026we are managing such volatility through supply-chain efficiencies, productivity initiatives, and calibrated pricing strategies.\u201d<\/p>\n
\u201cGlobal concerns, which are being translated to high currency, oil prices and depreciating currency and its impact on inflation makes us cautious for the next year,\u201d said Nayar.<\/p>\n