By Admin 
India FMCG Sector Growth: The country’s FMCG (Indian Fast-Moving Consumer Goods) is currently in recovery mode. Centrum Broking’s Consumer Staples Coverage Universe said that in the second quarter of the financial year 2025-26, it is seeing a growth of 2 percent on an annual basis in comparison to the same quarter last year and in the third quarter, it is seeing a growth of 7.5 percent.
This growth was largely driven by a sharp increase in volume in terms of sales, which did not include ITC. This shows that after a long time, facing challenges of growth and margins, the FMCG sector is slowly returning to its glory. According to the report, there are signs of increase in demand due to reduction in inflation, expectation of better harvest along with good monsoon and government initiatives like changes in GST and income tax cut, due to which the FMCG sector of the country is gradually improving.
What were the problems in the second quarter?
There were some problems regarding GST in the October-December quarter, such as the implementation of GST 2.0 caused some disruption in the supply chain as many distributors and retailers were waiting for the new rates of goods. In such a situation the stocks were reduced. Due to this, there was an impact of 1-4.5 percent on the sales of companies.
However, during this period, exit growth in companies was good, due to which the outlook for Q4 has become even better. It has been said in the report that this sector is benefiting from the change in momentum. There was some benefit from restocking in Q3, as well as volume growth due to increased grammes.” Centrum believes coverage companies will see continued growth in terms of top line and volumes.
In which segments was recovery seen?
Industry experts say that rural markets are now growing ahead of urban markets. It remains at the forefront of quick commerce growth. Especially citing the performance of Nestle and Britannia, experts said that a clear increase in volume momentum has been seen in the food category. In the home and personal care (HPC) segment, the hair oil category has also seen a good recovery.
This positive trend is expected to continue till the last quarter of the financial year. The report expects that Q4 will see the benefit of increase in summer loading and consumption, which is supported by a stable raw material basket. Despite minor hiccups in international locations like Bangladesh, the overall sentiment remains positive with the industry moving from stagnation to volume-led growth.
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