Weak rural demand is anticipated to have an influence on the volume growth of FMCG companies in Q3.

Leading FMCG companies anticipate sequential improvement in consumer demand and low to mid-single-digit volume growth in the October–December quarter. Leading listed FMCG companies including Dabur, Marico, and Godrej Consumer Products stated in their quarterly reports that consumer demand from the rural market is trailing, even while the urban markets remained stable in the third quarter as demonstrated in the September quarter.Businesses anticipate a slow recovery since there are encouraging trends in volume trends and early indications of a recovery in consumption.Additionally, the producers anticipate growth in gross margins year over year, which will be aided by a moderating effect on inflation as the costs of essential inputs, including copra and edible oil, continue to be lower, and there has been some downward bias in the prices of crude derivatives.

This will assist FMCG companies in allocating more funding for marketing and promotions. "Increasing advertising and promotion (A&P) spending will be the primary driver of a sizable amount of the gross margin growth. As a result, operating profit is anticipated to increase year over year and record an improvement, according to Dabur India's quarterly updates. This is somewhat faster than revenue growth.