ICICI Securities flags post-GST FMCG demand uptick as premiumisation, price elasticity re-emerge
Channel checks by ICICI Securities point to a post-GST recovery in FMCG demand, with GST cut pass-through reviving price elasticity and premiumisation. The brokerage sees support for volume growth and near-term earnings momentum across FMCG companies.
What happened
FMCG sector · ICICI Securities channel checks show post-GST uptick in FMCG demand, with price elasticity and premiumisation re-emerging as GST cuts pass
Why this matters
A reviving premiumisation cycle strengthens the case for bolt-on acquisitions in higher-margin premium categories while demand momentum is rebuilding.
What to watch
- Quarterly volume growth prints vs ICICI Securities estimates
- Gross margin trajectory and A&P spend ratios
- Rural demand indicators and monsoon/agri income data
- Raw material (palm oil, crude derivatives) price moves
- Management guidance on price-elasticity response
- Rotate toward large-cap FMCG names with premium-skewed portfolios and pricing power
- Track Q2/Q3 volume commentary in earnings calls for pass-through confirmation
- Monitor channel inventory levels post price-cut to distinguish restocking from genuine demand
- Watch competitive promo intensity as a margin-erosion flag