New Delhi, March 25 -- The subdued demand for consumer goods is expected to persist over the next few quarters, with analysts anticipating a continued slowdown in urban consumption, a lack of pickup in rural growth, and a steady rise in key commodities such as palm oil, tea, and coffee, which they believe will exert margin pressure for at least one to two quarters.

Domestic brokerage firm Kotak Institutional Equities noted that the ongoing weakness in urban consumption would weigh on the volume and value growth of FMCG companies in 4QFY25E and 1HFY26E. Rural demand, which contributes about one-third to FMCG sales, remains stable and is likely to outperform urban demand for the fifth consecutive quarter.

The brokerage expects inflationar...