Kotak MF: Premium spending surges as mass consumption lags; Apple India FY26 revenue seen at 2x HUL

Kotak MF report flags a sharp K-shaped split in Indian consumption. Food wallet share dropped to 46% rural and 39% urban, while premium smartphones grew 5.9% CAGR vs -1.2% for mass. Urban wealthy incomes compounding 18% vs 6% for mass households (FY20-25). Apple India FY26 revenue projected at twice HUL's.

— Source publishedMon, 25 May, 2026, 10:34 IST·First seen Mon, 25 May, 2026, 10:42 IST·Source The Hindu BusinessLine

What happened

Kotak Mahindra Mutual Fund · Kotak MF report flags premiumisation in Indian consumption: food wallet share shrinking, premium smartphones, autos, rent and

Key facts

  • rural food share 59% to 46% (1999-00 to 2022-23)
  • urban food share 48% to 39%
  • premium phones 5.9% CAGR CY20-25
  • mass-market phones -1.2% CAGR
  • premium smartphone share 20% to 26%
  • urban wealthy income 18% CAGR vs urban mass 6% CAGR FY20-25
  • Apple India FY26 revenue projected 2x HUL

Why this matters

Hunt acquisitions in premium D2C, affluent fintech, and aspirational lifestyle brands; divest or restructure mass-tier assets before the K-shaped divergence repricing hits public comps.