After months of slowdown, client demand rebounds in Oct–Dec on GST cuts, softer inflation
Quantity gross sales of air-conditioners and TVs rose about 7-8% year-on-year after two consecutive quarters of decline following the GST discount, whereas fridges and washing machines posted 5-6% progress, as per trade estimates. The retail market reported its finest section of progress in multiple and a half years.
Blue Star managing director, B Thiagarajan, mentioned gross sales picked up after two weak quarters, whilst retailers stayed cautious. “That is regardless of retailers not but stocking up for summer season in contrast to earlier years to make sure their working capital isn’t blocked. Nonetheless, unsold stock ranges have come down considerably,” Thiagarajan mentioned.
Increase from Winter Stocking
India decreased the relevant GST on most consumption gadgets from September 22 final 12 months within the largest consumption-tax reforms for the reason that uniform levy was launched in 2017.
Quick-moving client items (FMCG) firms additionally reported early indicators of revival. Dabur, in an investor replace, mentioned demand improved throughout the quarter, aided by GST revisions.
“In October 2025, distributors and retailers targeted on liquidating higher-priced stock within the channel. After commerce stabilisation, client sentiment improved throughout city and rural markets, with rural demand persevering with to outperform city demand,” the corporate mentioned.
Retail stocking strengthened as properly. Orders at neighbourhood shops rose 6.9% within the December quarter, greater than double the three.1% progress seen a 12 months earlier, in response to Bizom, which tracks eight million kirana shops within the nation.
“Sturdy retail stocking of winter merchandise additionally helped gross sales, particularly of non-public care merchandise, regardless of broader GST-led disruption,” mentioned Harshit Bora, analytics head, Bizom.
Final week, client items firm Marico mentioned volumes grew at a excessive single-digit price year-on-year within the December quarter, and it stays optimistic a couple of gradual enchancment in consumption within the quarters forward, as a consequence of easing inflation, decrease GST charges, larger minimal help costs, and a wholesome crop-sowing season.
The restoration follows greater than 10 quarters of muted gross sales enlargement, largely as a consequence of weak revenue progress and migration of discretionary spending to journey and leisure.
Organised retail segments corresponding to attire, footwear, magnificence and fast service eating places had logged single-digit progress for many of 2024 and 2025, till the final quarter.
“October and November had been robust, with 11.5% progress, indicating that the Indian retail market returned to double-digit progress for the primary time in almost 20 months,” mentioned Kumar Rajagopalan, chief government officer of the Retailers Affiliation of India. “December, nevertheless, was blended, and it stays to be seen whether or not the momentum continues, though a low base and constructive sentiment ought to assist.”
V-Mart Retail reported a ten% rise in income from operations. Whereas Durga Puja gross sales shifted to September this 12 months, the worth trend and grocery retailer mentioned cumulative efficiency throughout the second and third quarters resulted in over 5% progress in same-store gross sales and 15% progress in complete income.
Through the fiscal 12 months, the federal government rolled out revenue tax aid for the center class and lower GST charges efficient September 22 throughout a variety of merchandise, reducing costs. Executives mentioned these measures helped revive demand.
Value Issue
Nevertheless, rising costs in electronics may derail the restoration. Counterpoint Analysis mentioned smartphone gross sales jumped 12% throughout the festive season however fell sharply in November and December after costs rose 5-15%.
“October and November gross sales mixed is down by 10% year-on-year. December too has declined,” mentioned Tarun Pathak, director, analysis, Counterpoint.
