EastSpenders How to navigate the India consumer space

Research evidence excerpt

EastSpenders How to navigate the India consumer space

14 May 2026

EastSpenders EquitiesConsumer & Retail

How to navigate the India consumer space Asia

W ’s

Karen Choi*

Raw material costs have increased, especially for crude-oil derivatives, with some HeadThe Hongkongof Consumerand Shanghai& Retail Research,Banking CorporationAsia Pacific

impact on other commodities like palm oil. While the geopolitical situation and Limited, Seoul Securities Branch

karen.choi@kr.hsbc.com

therefore raw material costs are volatile, spot prices indicate average cost inflation of +82 2 3706 8781

8-10% with a wide dispersion. We expect Indian consumer companies to pass-on Nihal Mahesh Jham*, CFA

only a part of this to end consumers as demand recovery remains nascent and price Senior Analyst, India Consumer & Retail

HSBC Securities and Capital Markets (India) Private

hikes could offset some of the volume growth benefit from GST cuts. These Limited

dynamics mostly affect the India staples space as the discretionary space has been nihal.m.jham@hsbc.co.in

+91 22 66283771

more insulated from cost inflation so far.

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

May Spotlight – Marico not registered/ qualified pursuant to FINRA regulations.

We still like Marico’s balance of maintaining a strong core business (coconut oil, hair

oils, and edible oils) while driving sustainable sales growth in its Foods and Personal

Care businesses. Marico’s aggressive inorganic forays and focus on diversification

stand out across FMCG companies. Moreover, Marico is the least exposed in the

current cost inflation cycle, in our view, and the company has already initiated slight

price hikes to offset this impact. Its guidance of high-teen EBITDA growth (HSBCE: