Indian Consumer Sector "Q1FY27: Likely a good quarter, with many improving..."

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Indian Consumer Sector "Q1FY27: Likely a good quarter, with many improving..."

Global Research

8 July 2026ab

Indian Consumer Sector Equities

IndiaQ1FY27: Likely a good quarter, with many

improving narratives Consumer, Non-Cyclical

Amit Sachdeva

Analyst

amit.s@ubs.com

Context for India consumer: Many moving parts +91-22-6155 6029

Since the start of the Middle East conflict, amidst episodes of escalation and resolution, Sidhant Jain

divergences in the consumer sector have widened: 1) Names such as Trent, Varun Associate Analyst

Beverages and Asian Paints have rebounded sharply from lows. 2) The QSR sector has sidhant.jain@ubs.com

sharply underperformed on concerns of rising energy costs and inflation, which could +91-22-6155 6000

weigh on fragile demand. 3) Strong operations have shaped the relatively strong stock Tushar Baijal

performances of Titan, Nestle, Marico and Pidilite. 4) Within consumer staples, HUL, Associate Analyst

Colgate, ITC and Britannia have been relative laggards. 5) While input price volatility tushar.baijal@ubs.com

continues (eg, crude rose c60%, then corrected c20%), the prospect of return of pricing +91-22-3051 5000

is a positive development for consumer staples. Also, where volume growth is sticky, it

could pave the way for stronger earnings growth for the rest of the year.

Good Q1FY27 expectations for most companies

Consumer staples: We expect median revenue growth of nearly 11-12% for Q1FY27,

with median EBITDA growth slightly higher (c13%). We expect Marico and Nestle to

have above-average revenue growth, with even Dabur, HUL and Colgate at nearly

double-digit revenue growth. Retail (Titan, Dmart, Trent, Lenskart): Titan and

Lenskart are likely to lead the pack in revenue growth, while DMart has clearly been