Fundamental Glossary / Growth Metrics
Volume Growth
The percentage change in units sold, tonnes produced, or another physical measure, rather than in rupees.
Formula
(This period volume - last period volume) / last period volume.
What it means
Volume growth is demand in physical terms. It is not flattered by a price increase and not hurt by a price cut.
The unit has to be meaningful. Tonne growth in a commodity is clear. "Units" that mix cheap and expensive products can mislead, which is why mix is disclosed beside it.
How to read it
Volume up and realisation flat is share gain or market growth. Volume up and realisation down may be discounting. Volume down and realisation up may be premiumisation, or simply selling less of the cheap product.
What to watch
Channel filling shows up as volume that reverses. A capacity number is not volume sold. Producing more than was sold builds inventory, not demand.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.