Beauty, cookies, and wedding jewelry sparkle in Q1 FY26.

India’s consumer sector displayed initial signs of recovery in Q1 FY26, with increased expenditure on packaged items, beauty products, fashion, and jewellery, supported by better urban sentiment. As per quarterly reports from major Indian firms, the fast-moving consumer goods (FMCG) industry experienced consecutive volume growth, particularly in urban areas. Dabur observed an uptick in demand in its home, personal care, and healthcare sectors, although its beverages division faced challenges due to a shorter summer and unseasonal rainfall. Consequently, the firm anticipates single-digit growth in consolidated revenue. Godrej Consumer Products, having a solid presence in urban areas, also announced enhanced volume growth, uplifting investor confidence. Marico reported growth in its food and premium personal care segments, although its flagship Parachute brand faced challenges from increasing copra prices and inflationary pressures. Beauty and fashion retailer Nykaa stated that its beauty division is projected to achieve gross merchandise value (GMV) growth in the upper mid-20% range, backed by robust in-house brands and wide distribution. Its fashion sector also demonstrated progress despite geopolitical upheavals. Tata Group’s Trent announced a 20% increase in revenue for Q1 FY26, falling short of its five-year compound annual growth rate (CAGR) of 35%, suggesting that a complete recovery in consumer demand is still underway. Kalyan Jewellers experienced a 31% increase in revenue, fueled by demand during the festive and wedding seasons, even with fluctuations in gold prices and geopolitical issues. Analysts observed that better monsoons and declining inflation may bolster demand in both rural and urban areas moving ahead.