Q3 results preview: Weak urban demand likely to weigh on FMCG volumes

But price hikes will help push revenues up, say brokerages

Fast-moving consumer goods (FMCG) companies are expected to witness pressure on volumes in the October-December quarter. However, price hikes will help push up revenues, said brokerages.

 

The volumes may be impacted as persistent weak urban demand may play out in the performance of consumer companies in the third quarter (Q3) of 2024-25 (FY25).

 

“Our ground checks suggest that the demand environment for FMCG has not seen any meaningful improvement due to several factors,” HDFC Securities said in its report.

 

The brokerage pointed out that the macro environment remained subdued and some companies have undertaken inventory corrections.

 

“The largest modern trade