Indian FMCG sales rose 9% YoY in Q3 FY26, boosted by volume growth and GST cuts, but margins face pressure from price corrections and competition.

Indian FMCG companies saw about 9% year-on-year revenue growth in Q3 FY26, driven by a 6% volume increase, according to a Systematix Group report. Growth was supported by GST reductions in key categories like biscuits, dairy, and personal care products, along with restocking after earlier disruptions. However, margin gains are expected to remain limited due to price corrections in tea and edible oils, intense competition in detergents and paints, and reduced pricing power. The report stresses that long-term sustainability depends on growth excluding GST benefits, as temporary factors do not guarantee lasting profitability.