ITC reported sustained resilience in rural demand alongside an encouraging uptick in urban consumption, indicating a gradual recovery in consumer spending. The company highlighted favorable macroeconomic conditions, stable inflation, and government measures that support disposable incomes, underpinning optimism for continued growth across both rural and urban markets.
ITC Ltd, one of India’s largest conglomerates in FMCG, cigarettes, and agribusiness, has noted continued strength in rural demand while urban consumption has shown signs of revival amid easing inflationary pressures. Rural markets remain a key growth driver, benefiting from a good monsoon and rising rural incomes.
Urban consumption, while subdued in recent quarters due to inflation and cost-of-living pressures, is witnessing an early recovery, particularly in smaller towns, supported by tax cuts and improving disposable incomes. Industry experts point to increased digital payments and spending in smaller businesses as signs of underlying urban resilience beyond headline data.
ITC’s diversified portfolio, including staples, personal care, and cigarettes, enables it to capitalize on these mixed consumer trends. The company’s strategic focus on rural market penetration and innovation is expected to sustain growth momentum in FY26, aligning with broader economic stability and government stimulus.
Key Highlights:
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Rural demand remains robust, driven by favorable monsoon and wage growth
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Urban consumption showing early signs of recovery, especially in smaller towns
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ITC benefits from diversified product portfolio including cigarettes, staples, and personal care
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Government tax cuts and inflation stabilization support consumer spending
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Digital payment growth and small business spending indicate resilient urban market
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Positive outlook for continued consumption growth in FY26
Sources: Financial Express, Economic Times, Reuters, NDTV Profit, ITC Corporate Reports