India Consumer Q4FY26 review: Uncertainty clouds recovery

Research evidence excerpt

India Consumer Q4FY26 review: Uncertainty clouds recovery

26 May 2026

India Consumer EquitiesConsumer

Q4FY26 review: Uncertainty clouds recovery India

◆ Q4FY26 staples revenues grew by 11% yoy (Q3: 8%) as Nihal Mahesh Jham*, CFA

underlying demand trends improved Senior Analyst, India Consumer & Retail HSBC Securities and Capital Markets (India) Private

Limited

◆ Discretionary (ex-Jewellery) also reported an improvement nihal.m.jham@hsbc.co.in

+91 22 66283771

(21% vs 15% in Q3); Jewellery could see headwinds

Pratik Gothi*

Analyst, India Consumer & Retail

◆ Cost inflation spikes create uncertainty; trim DMART’s TP to HSBC Securities and Capital Markets (India) Private

INR3,870 (from INR4,000). Prefer Buy-rated MRCO, BRIT, pratik.gothi@hsbc.co.in

TCPL, VMM and TRENT +91 80 6737 3929

Nupur Vyas*

Associate, India Consumer & Retail

HSBC Securities and Capital Markets (India) Private

Consumer staples (Staples) – improving dynamics: Average revenue growth Limited

(excluding MRCO and ITC, which had commodity-driven vagaries) improved to nupur.vyas@hsbc.co.in

+91 22 40891584

11.2% (Q3: 8.5% yoy) on the back of both underlying demand improvement along

with benefits of GST cuts. Nestle India’s performance stood out with 23% yoy growth

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

in revenues while Britannia Industries’ c.7% growth was underwhelming due to a dual not registered/ qualified pursuant to FINRA regulations

pricing issue in low unit packs (LUPs) in the market. Colgate India’s efforts towards

its premiumisation agenda led to better growth, although on a low base (2-yr revenue

CAGR: 3.5%). Honasa also had another strong quarter though we retain our Reduce

rating on the stock as sustaining growth in FY27 will be key as FY26 benefited from a

low base.