India's FMCG sector experienced moderated growth in Q2 FY26, with value growth slowing to 12.9% YoY from 13.9% in Q1 and volume growth easing to 5.4% from 6%, primarily due to disruptions from revised GST rates leading to pipeline corrections and destocking. Despite the slowdown, rural markets outperformed urban areas for the seventh straight quarter, posting 7.7% growth versus 3.7%, highlighting resilient countryside demand.​ Industry executives anticipate a robust recovery in H2 FY26, fueled by GST rate reductions improving affordability in food, staples, and personal care, alongside a favorable monsoon, easing food inflation, and a low base from H2 FY25. Deflation in key raw materials like polypropylene, palm oil, crude oil, wheat, and HDPE (down 10-18% YoY) is expected to lift gross and EBITDA margins through cost controls and pricing actions.​ Company outlooks

expects demand pickup from November with GST boosting disposable income.​ sees mid- to high-single-digit growth in H2 on rural recovery.​ anticipates soap rebound and palm oil-driven margin gains.​ forecasts double-digit EBITDA growth via rural traction and premiumisation.​ and Britannia highlight momentum in tea/salt/e-commerce and stable margins.​ Trade normalisation by mid-October sets the stage for consumption catalysts, positioning FMCG for accelerated H2 performance. Source: The Economic Times No Recommendations