Mumbai, Aug. 10 -- After a lukewarm June quarter, India's large consumer goods firms are betting on a broader demand revival, dismissing fears of a return to the 'K-shaped' consumption growth that was seen after the pandemic.

Carefully calibrated price hikes are seen helping fast-moving consumer goods (FMCG) sales volumes recover, while concerns over energy-linked cost spikes and the El Niño impact have eased, giving the companies greater confidence.

"Price increases have been well calibrated, so as not to impact volume growth significantly," said Anuj Sethi, senior director at Crisil Ratings.

The sector's optimism stems from hope around raw material prices stabilizing. "If the war ends tomorrow, then I think petroleum prices will...