Q1 FY27: Premiumization Drives Growth For FMCG Giants

FMCG majors strategic focus on premiumisation and innovation continued to yield strong results underscoring the strength of growing consumer appetite for higher-value products in Q1FY27.

Hindustan Unilever Limited (HUL) reported its Q1 FY27 posting a net profit of  INR 2,673 crore and a turnover of INR 17,184 crore. Net profit declined  three percent year-on-year due to the absence of a base-quarter tax credit, while underlying sales grew 10 per cent.

HUL’s Beauty & Wellbeing recorded 12 per cent USG, driven by high-single digit UVG. Hair Care achieved double-digit USG driven by Premium Hair Care including future-formats, while the category continued to strengthen market leadership. Skin Care and Colour Cosmetics delivered high-single digit USG, led by double-digit growth in Premium Skin Care. 

The company’s Premium Tea reported low-single digit UVG. Packaged Foods delivered high-single digit USG, led by Unilever Foods Solutions, Mayonnaise, and International Sauces. During the quarter, the segment strengthened its premium portfolio, relaunching Bru Southern Trails Coffee and extending Red Label Instant Tea and Kissan Chutney range with new variants.

“The performance reflects the strength of our brands, increasing competitiveness of our portfolio, and disciplined execution of our strategic priorities. As our investments in market development, channel expansion and portfolio transformation continue to scale, we are building a stronger, future‑fit business. While we continue to navigate the short-term dynamic environment, we remain focused on driving volume-led revenue growth,” said Priya Nair, CEO, HUL.

Nestle India Ltd reported a sharp increase in its consolidated earnings for the fiscal first quarter, with net profit rising 48 percent year-on-year to INR 958.7 crore, driven by robust revenue growth. Consolidated revenue from operations rose 25 percent from a year earlier to INR 6,378.2 crore.

Manish Tiwary, Chairman and MD, Nestlé India, said, “We delivered a strong quarter with sales growth of 25.4 per cent led by volume growth.”

Nestle’s growth was driven by the Confectionery product group, recording another strong quarter of volume led double-digit growth that was bolstered by premiumisation and e-commerce, with strong underlying transactions across powerhouse brands. KITKAT continued to gain market share. The Powdered and Liquid Beverages product group recorded another quarter of strong and consistent performance, marking the 20th consecutive quarter of double-digit growth. This performance was powered by increased coffee penetration, accelerated premiumization, and deeper category relevance across consumer segments, supported by sustained brand-building that continues to strengthen our equity and by an expanding footprint. 

The launch of the NESPRESSO pavilion in Bengaluru marks another step in taking the brand closer to discerning consumers, meeting them in the spaces and moments where they seek premium coffee experiences. The company’s Pet Food business delivered strong double-digit growth, supported by portfolio expansion, wider distribution and sharper consumer engagement. “We strengthened our presence in cat food with the launch of FELIX Gravy Lover and PRO PLAN Cat, addressing evolving pet parent needs across mainstream and premium offerings,” Tiwary added.

India’s Ayurveda major Dabur India Limited reported a 15 per cent surge in net profit at INR 591 Crore in Q1 of 2026-27, backed by a 10.6 per cent jump in consolidated revenue at INR 3,761 crore. India FMCG business reported 9.5 per cent growth with an underlying Volume growth of 5 per cent.

Dabur reported strong growth across its key verticals with market share gains across over 90 per cent of the portfolio during the quarter. “Our multi-pronged strategy enabled us to grow margins while continuing to invest in future growth opportunities. Our performance demonstrates that even in uncertain times, consistent execution and consumer-centric innovation remain our strongest growth drivers,” CEO, Mohit Malhotra said.

“Our strategic focus on premiumisation and innovation continued to yield strong results as the premium brands grew at twice the pace of regular brands, underscoring the strength of our prestige offerings and the growing consumer appetite for higher-value products. Innovation also remained a key contributor to growth, with new products accounting for 2.6 per cent of revenue,” he added.

For Dabur, recent launches such as Siens and Cheers have strengthened presence in fast-evolving consumer segments and demonstrated its ability to identify and address emerging consumer needs. “Going forward, we see premiumisation playing an increasingly important role in shaping the next phase of Dabur’s growth story, while driving both market expansion and margin enhancement,” Malhotra said.

The Foods category ended Q1 up 29.2 per cent and the Badshah business grew by 13.2 per cent. Despite a challenging start to the season due to rain-led demand disruptions, Dabur’s beverages business recovered strongly over the remainder of the quarter and returned to the positive territory with mid-single-digit growth in Q1. “Our premium beverage portfolio continues to gain scale, with Real Activ Juices growing 42 per cent and Coconut Water growing 73 per cent during Q1. The strong traction in these categories reinforces our confidence in the long-term opportunity within health and wellness-led beverage segments,” he added.

Premium products continued to grow through rising consumer aspiration, health and wellness trends, and fast digital delivery channels.