Consumer – Jul-Sep’26 Earnings Preview – 2HFY27 uncertain given inflation & drought
Published on 08 Oct 2026
We estimate our coverage universe to report Sales, EBIDTA, PAT growth of 10.5%/4.7% and 4.2% respectively on 99bps YoY EBIDTA margin contraction. QoQ demand remained steady. Staples coverage universe is likely to post a growth of 3.4%/-2.4% YoY in sales/EBIDTA respectively. QSR will report an increase of 14.8% in sales and 22.4% in Post IND AS EBIDTA. Retail shows a 18.4% increase in sales and 24.6% growth in EBIDTA led by strong growth in Jewellery segment. Paints will show 17.2% increase in sales and 16.5% growth in EBIDTA on 11bps margin contraction. Consumer sector valuations have taken a knock given uncertainty on demand amidst rising inflation, interest rates and deficient monsoons. However, we believe Britannia, Marico, HUL, Pidilite and Titan offer favorable risk reward in the current context.
