Consumption expenditure to pick up progressively: ITC

It noted that India’s macroeconomic variables are expected to remain stable in FY26, with GDP growth staying around 6.5%.

ITC also raised concerns over food inflation, which witnessed a ‘sharp uptick’ and impacted the consumption growth in the FMCG sector, which is the second largest business of ITC after cigarettes.

“The impact of inflationary pressures on household savings weighed on consumption expenditure, particularly in urban markets; however, demand in rural markets was relatively resilient. The weakness in consumption was reflected, inter alia, in the muted volume growth of the FMCG sector,” it said. Food inflation was 7.3% in FY25, while headline inflation (CPI) remained within the RBI’s target range at 4.6%

ITC said consumer spending on the company’s FMCG products has increased 4.6% to nearly Rs 34,000 crore in FY25, and the firm has expanded its play with 100 new products in the segment.