New Delhi, Aug. 20 -- Consumer goods companies are expecting a stable FY26 for raw materials and a recovery in margins starting from the second quarter, according to a report by Nuvama.

The report said that the majority of fast-moving consumer goods (FMCG) players have delivered multi-quarter high revenue and volume growth, supported by strong demand trends.

It stated "All staples companies have highlighted of a stable FY26 for raw materials and margins to improve Q2 onwards".

The report stated that the urban demand has shown clear signs of recovery, driven by higher disposable income after Reserve Bank of India's (RBI) rate cuts and consumer inflation falling to an 8-year low.

Urban general trade, which had been weak for a few quarte...