From Food to Fashion: India’s Consumer Demand Sees Early Signs of Recovery in Q1 FY26
After months of weak urban consumption, Indian companies across sectors like FMCG, beauty, fashion, and jewellery are finally seeing signs of demand recovery. According to quarterly business updates from major brands like Dabur, Marico, Nykaa, and Kalyan Jewellers, the June 2025 quarter brought renewed consumer activity — a hopeful sign for the rest of FY26.
Let’s break down what this means across industries:
🛒 FMCG Sees Volume Uptick, But Weather Plays Spoilsport
Dabur reported improved volume growth in urban areas, especially in home and personal care products. However, the company noted that the beverage segment took a hit due to a short summer and unseasonal rains. As a result, its overall revenue growth for the quarter is expected to stay in the low-single digits.
Godrej Consumer Products echoed a similar sentiment, reporting sequential improvement in volume growth, thanks to its wider urban footprint.
🥥 Marico Battles Inflation, Sees Sequential Growth
Marico, the maker of Parachute oil, has been struggling with high copra prices and unseasonal rains, which worsened inflation. This led to a 30% price hike in the coconut oil segment over the last year.
Despite a dip in volumes for Parachute, the company’s foods and premium personal care segments performed well, showing strong sequential improvement. Marico expects easing inflation and commodity stability to further support recovery in the second half of FY26.
💄 Beauty and Fashion: Nykaa Sees Strong Growth Despite Challenges
Nykaa’s Q1 saw mixed results. While geopolitical tensions hurt its flagship sale, the company's own brands and broad distribution network helped maintain momentum in beauty. The beauty segment is expected to show mid-20s growth in gross merchandise value (GMV).
Fashion, often affected by discretionary spending, also showed signs of revival as inflation pressures eased.
💍 Jewellery: Weddings Boost Kalyan Jewellers
Kalyan Jewellers reported a 31% rise in consolidated revenue, driven by wedding demand and Akshaya Tritiya sales. However, the company acknowledged that fluctuating gold prices and geopolitical uncertainties caused some temporary slowdowns in demand.
🛍️ Retail Growth Slows at Trent
Tata Group’s Trent posted a 20% standalone revenue growth—slower than its five-year average of 35%. This indicates that while demand is returning, a full recovery is still some distance away.
🧾 The Bigger Picture
The overall data suggests:
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Urban demand is gradually improving, helped by tax benefits and easing inflation
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Weather and global tensions remain challenges
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Premium and value-driven brands are performing better
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Consumer sentiment is returning, but cautiously
Final Thoughts
While the recovery isn't yet uniform, it’s clear that India’s consumer economy is starting to find its feet again. From FMCG to fashion, companies are optimistic that with better monsoons and a stable macroeconomic environment, the second half of FY26 could be even stronger.