India Consumer - 4QFY26 Staples review – on an improving track

研报英文原文证据摘录

India Consumer - 4QFY26 Staples review – on an improving track

Global Markets Research

9 June 2026India Consumer

EQUITY: CONSUMER RELATED

4QFY26 Staples review – on an improving track Research Analysts

India Consumer Related

Staples: Volumes/Sales/EBITDA grew c.9%/10%/12% y-y; Foods: Volumes/Sales/EBITDA Mihir P. Shah - NFASL

grew 14%/12%/21% y-y; HPC: Volumes/Sales/EBITDA grew 6%/7%/7% y-y mihir.shah1@nomura.com

+91 22 403 74232

Common trends across consumer companies Riya Patni - NFASL

riya.patni@nomura.com

• Staples revenue improved sequentially to 10.5% y-y in 4Q, above its eight- +91 22 405 33473

quarter average of 6.7% (Fig.9).

○ Volumes (Fig.7): While the organized sector’s volume growth of 9% in 4Q was the

highest-ever over the past four years, FMCG industry volume growth was down

sequentially, indicating that the organized players grew faster than unorganized

players. We note that almost all the staple companies under our coverage, except

for Godrej Consumer, witnessed either sequentially stable or improved volume

growth in 4Q, supported by the GST-rate cut.

○ Pricing-led growth (Fig.8), excluding Marico, which had taken sharp price hikes

of 60% in earlier quarters, was in low to mid-single-digits for companies under our

coverage and for the FMCG industry. However, with rising input costs led by the

West-Asia war, we note that all the companies have started to take calibrated

price increases in the mid-single-digits to alleviate the impact.

○ Margins remained range-bound, leading to average EBITDA growth of 11.6%

y-y, which was above its eight-quarter average of 4.6% (Fig.11): GPM for

staple companies remained largely range-bound (Fig.14), as the expansion of

food companies was offset by the contraction recorded by Home and Personal

Care (HPC) companies.