Premium Push Fuels FMCG's Q3 Results In the December quarter of FY26, FMCG heavyweights sharpened their focus on high-growth categories and witnessed a rising trend towards premiumization.

India's FMCG firms are entering a growth phase driven by premiumization, where companies are leveraging consumer willingness to pay more for quality, health, and convenience.

India Inc has been experiencing a strong shift towards premiumisation, with high value and branded products growing at a faster pace than those in the unbranded and budget categories. This trend is especially prominent in FMCG, with consumers' rising aspirations and changing lifestyles, this is expected to drive India's growth story.

"India's rising per capital income, rapid urbanisation, improved access to premium global brands and more convenient financing options are all driving the premiumisation trend. Growing aspirations are leading consumers to choose products that offer superior experiences or elevate their status," ICRA said in a note.

In the December quarter of FY26, FMCG heavy weights have witnessed a growing trend towards premiumization.

Dabur India reported a 7.32 per cent on-year increase in consolidated net profit at INR 553.61 crore in the December quarter of FY '26. Rural demand continued to outperform urban markets for the eighth consecutive quarter. With a distribution network covering more than 133,000 villages, the company has one of the strongest rural reaches in the industry. Modern trade and e-commerce continue to be growth drivers in urban India, driving premiumisation and bolstering urban penetration.

"We see premiumisation as a multi-dimensional strategy, not merely a pricing play. It's about elevating the consumer experience through innovation, quality, and relevance. Gen Z and millennials, in particular, are driving this shift with their strong preference for premium products. Premiumization is a key pivot of growth for us," said Mohit Malhotra, CEO, Dabur India Limited.

Tata Consumer Products Limited (TCPL)'s momentum on innovation continued across categories with focus on health & wellness, convenience and premiumization.

Sunil D'Souza, MD & CEO of TCPL, said, "Q3FY26 marked another quarter of strong, broad-based performance for Tata Consumer Products, led by healthy volume-led growth and sustained momentum across our core as well as growth businesses. Our India branded business delivered double-digit underlying volume growth, with foods and beverages continuing on a strong trajectory driven by strong execution, portfolio expansion and premiumization."

TCPL reported a 36 per cent year-on-year (YoY) increase in its consolidated net profit at INR 385 crore for the third quarter ended December 31, 2025. The FMCG company clocked a net profit of INR 279 crore during the same period last year. The company's revenue from operations grew by 15 per cent to INR 5,112 crore, compared to INR 4,444 crore in Q3 FY25.

ITC's Q3 FY26 profit stood at INR 5018.45 crore as against INR 5013.18 crore in the same period a year ago. Meanwhile, its revenue from operations recorded a 6.6 per cent YoY growth to INR 21706.64 crore during the quarter under review. The company recorded broad-based growth across categories such as staples, biscuits, noodles, dairy, premium, personal and home care. Strong performance in differentiated and premium offerings, leveraging mainstream trademarks & innovations.

"Calibrated pricing actions, premiumisation, and focused cost management initiatives drove margin expansion," the company said in a statement. ITC's education and stationery products business continued to focus on portfolio premiumisation & innovation.

FMCG major Nestle India reported a 45 per cent year-on-year jump in its December quarter consolidated net profit at INR 998 crore compared to INR 688 crore reported in the year-ago period. The company's revenue from operations stood at INR 5,667 crore in Q3FY26, up 19 per cent over INR 4,780 crore posted in the corresponding period of the last financial year.

For Nestle India, confectionery was the fastest-growing product group, experiencing robust double-digit growth fuelled by strong underlying volume increases. This growth was supported by significant advertising spends, expansion of store presence and a wider range of products available, alongside rural market acceleration, premiumization, and increased in-home penetration driven by quick commerce.

In 2025, urban markets led the early recovery, with discretionary spending reviving in premium personal care, packaged foods, and out-of-home consumption. Stable white-collar employment and rising aspirations in Tier-1 and emerging Tier-2 cities provided tailwinds.

"This shift presented a clear mandate: invest decisively in urban premiumisation where returns were quicker, while maintaining measured investments in rural penetration to ensure that the building blocks to sustained long term growth were being put in place. rural. The imperative is not merely to expand rural penetration but to do so with rigour—ensuring that distribution investments, trade spends, and marketing outlays generate measurable, sustainable returns. This dual focus on growth and capital efficiency will define competitive advantage in the years ahead," said Aasif Malbari, chief financial officer, Godrej Consumer Products Ltd.

With sharper focus on high-growth categories, FMCG firms remain confident in their strategy to build a more agile, innovation-led portfolio.