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Consumer Sales Rebound: GST Cuts Boost Demand
6 Apr
Summary
- Major consumer goods companies reported sales rebound in March quarter.
- Volume recovery driven by GST rationalization and income tax relief.
- Companies optimistic about continued consumption growth despite Gulf conflict.
Consumer goods companies and retailers in India, including AWL Agri Business, Dabur India, Marico, DMart, and V-Mart Retail, reported a notable rebound in sales for the quarter ending March 31, 2026. This resurgence in sales volumes is largely credited to the goods and services tax (GST) rationalization that took effect in September 2025, coupled with income tax relief measures for the middle class.
Companies like Marico and Dabur India experienced high single-digit underlying volume growth in their domestic operations during this period. Retailers also demonstrated strong performance; V-Mart Retail reported a 24% increase in revenue year-on-year, while DMart saw a 19% rise in sales. These positive results indicate a gradual recovery in consumption, with urban markets showing signs of converging with faster-growing rural markets.
Despite global challenges, such as the Gulf conflict which has introduced supply chain constraints and increased input costs, companies remain optimistic about continued consumption growth. Organized trade channels, including modern retail and e-commerce, sustained their growth momentum. Dabur India anticipates a gradual domestic demand recovery, while Marico expressed confidence in delivering healthy volume-led revenue growth in FY27.
