Consumer – Oct-Dec’25 Earnings Preview – GST led recovery slower than expected
Published on 08 Jan 2026
We expect a gradual demand revival in the FMCG segment during 3Q post completion of GST transition. That said, moderation in food inflation and raw material prices could provide some support to margins. The QSR segment delivered a mixed performance during the quarter, with subdued underlying demand and elevated competitive intensity. Jewellery sales in 3Q saw strong value growth supported by higher gold prices and wedding season demand, while underlying volume growth remained muted. Consumer preferences continued to skew towards plain gold purchases, primarily driven by investment demand. The paints segment witnessed a sequential improvement in demand, aided by festive and wedding season tailwinds. Food and grocery retail continues to remain highly competitive, especially in urban catchments with more entrants in quick commerce.
We rate Titan Company and Britannia as top picks in consumer universe. We are also constructive on NEST, MRCO and PIDI, sans premium valuations.
