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A Long Rough Patch
Financial Express Pune
|August 09, 2025
Macro headwinds may make it tougher for India Inc to do better than the subdued Q1 earnings season
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The June quarter earnings season makes it clear that consumption demand remains muted, which is partly the reason credit growth has been so subdued. Whether it's fast-moving consumer goods, manufacturers and retailers of apparel, or fast food chains, they are all struggling to get customers to buy more. Hindustan Unilever managed a volume growth of 3% year-on-year (y-o-y), which was better than the 2% in the previous quarter, but sales were up only by about 4% y-o-y while operating profits were marginally lower. It's not sales of just small-ticket items that have a low momentum; carmakers too are unable to push through large volumes except those selling premium models. At Maruti Suzuki, for instance, volumes for Q1FY26 increased by just 1.1% y-o-y.
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