In their post-results commentary, companies highlighted the stress in urban India. NielsenIQ's latest data shows that India's FMCG sector grew 5.7 per cent by value and 4.1 per cent by volume in Q2FY25, driven primarily by rural demand. Rural demand grew at twice the pace of urban demand during this period.
Urban demand registered a growth of 2.8 per cent, while rural demand rose by 6 per cent, up from 5.2 per cent in the April-June quarter of FY25. Brokerages pointed out that weak urban demand and higher inventory in general trade weighed on urban revenue in Q2FY25.
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