Leading fast-moving consumer goods (FMCG) companies expect volume-led growth in FY25, with a revival in consumption supported by a lower inflationary environment, projections of a normal monsoon and good Rabi crop.

Companies such as Britannia, Marico, Dabur, GCPL and HUL in their latest March quarter earnings also expect revenue growth in the new financial year as the deflationary cycle is over.

The companies were forced to slash prices as prices of major commodities had fallen, which had in turn impacted their top line and value growth in the last two quarters of FY24.

Besides, they expect a gradual uptick from the rural market, which contributes over one-third of the FMCG sales in the country.

For Dabur, volume growth will be the way forward in this financial year, notes its CEO Mohit Malhotra in an investors’ call.

He remains optimistic of the gradual uptick in consumption trends in FY25 and expects a mid-to-high single-digit volume growth, considering a normal monsoon, improving macroeconomic indicators, government spending and lower inflation.

Britannia Industries Vice-Chairman and Managing Director Varun Berry points out that FY25 is a year of top line growth and expects double-digit volume growth post-election and during monsoon.

“Our outlook on this year is not deflationary. Our outlook on this year is slightly inflationary, which is a healthy inflation of 3 per cent,” he adds during an investors’ call.