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Our read
Dabur India is likely to take selective price hikes to defend margins as input costs stay high.
For operators
Plan for double-digit revenue growth in Q2 FY27 but slower EBITDA growth, as crude, palm oil and packaging inflation squeezes margins; Dabur and Godrej Consumer flag the pressure, while Marico's copra, 35% below peak, shows that input mix decides who is protected.
Watch
Marico gross margin commentary against copra staying 35% below peak
The report: FMCG Q2 FY27: double-digit revenue growth expected, but crude, palm oil and packaging costs squeeze margins
Dabur India and Godrej Consumer flag inflation, while Marico expects stronger gross margin with copra prices 35 per cent below peak. ICICI Direct expects EBITDA growth to trail revenue growth in Q2 FY27.
- Copra prices versus peak levels
- 35 per cent below
- Expected Q2 FY27 revenue growth, leading FMCG players
- double digits
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What to watch next
- Dabur management remarks on price hikes versus volume growth on the earnings call
- Crude and palm oil price direction through the Q3 FY27 quarter
- Godrej Consumer commentary on packaging and palm oil cost pass-through
The counter-case
The case against this reading — not reported by the source.
The headline treats the margin squeeze as sector-wide, but the evidence is mixed. Marico, a major name in the same preview, expects a stronger gross margin because copra is 35% below its peak. That alone undercuts a blanket 'margins squeezed' framing. The source also reports slower EBITDA growth, not falling EBITDA, so the 'down' tag may overstate the story. Margin pressure could be mild and still leave profits growing. Crude, palm oil and packaging costs hit categories unevenly: home care, personal care and packaged foods are exposed in different ways. Companies can also respond with price hikes, grammage changes, mix shifts and trimmed advertising spend, so reported EBITDA may beat a pre-result brokerage forecast. A preview from one brokerage is a forecast, not a result. Dabur and Godrej Consumer flagging inflation is normal management caution and does not show that margins actually contracted. Double-digit revenue growth, if it holds, would be the more notable signal, and the item underplays it.