Archive · 30 Sep 2025
FMCG Sector Faces Q2 Challenges Due to GST Changes
Imagine stores selling drinks and snacks.
Changes to taxes (GST) are making things a bit tricky, potentially causing sales to drop slightly.
Customers are buying less because of the new prices, and heavy rains also hurt sales of summer treats.
Companies fully passed on GST benefits to consumers.
The impact of these changes should improve starting in November.
The unrest in Nepal is also causing a slight negative effect.
GST changes are impacting FMCG sector volumes.
Distributors and retailers are clearing existing inventory.
Heavy rains affected demand for summer product categories.
The negative impact is expected to reverse starting in November.
Unrest in Nepal has a slight negative impact.
- Who
- Distributors and retailers of FMCG products
- What
- Facing challenges due to GST transition, heavy rains, and Nepal unrest.
- When
- Q2 FY26, with expected recovery starting November
- Where
- Not specified
- Why
- Delayed consumer purchases, reluctance to stock up, heavy rainfall.
Nuvama Institutional Equities
FMCG Sector
Market Impact
Nuvama Institutional Equities
Expecting adverse transition impact, to reverse from November.
FMCG Sector
Experiencing volume impacts from GST transition and heavy rains.
- Affected Sector
- FMCG
- Quarter Impacted
- Q2 FY26
- Main Factors
- GST Transition, Heavy Rains, Nepal Unrest
- Expected Volume Impact
- 2-3% decrease
- Categories Affected by Rain
- Soft drinks, beverages, beer, ice cream
- Recovery Expected
- November onwards
