FMCG Q2FY27 preview: 6 stocks HDFC Sec likes; Honasa, Nestlé, Emami, Bikaji, Britannia, Godrej Consumer - check targets
AI Summary
The mixed outlook for Q2FY27 earnings in the FMCG sector suggests that while revenue growth may improve due to a softer base and selective price hikes, persistent raw-material inflation could hinder margin recovery. Retail investors should focus on companies with strong execution capabilities, such as Nestlé India and Britannia Industries, which are expected to outperform despite the broader sector challenges. This earnings season will be pivotal, as any signs of demand moderation could further impact valuations in a sector already facing a de-rating.
Indian FMCG companies are set for a mixed Q2FY27 earnings season, with a softer year-ago base and selective price hikes expected to support topline growth. However, persistent raw-material inflation is likely to keep margins under pressure, making earnings delivery crucial for stock valuations.
Domestic brokerage house HDFC Securities, in its Q2FY27 earnings preview for the FMCG sector, maintained an underweight stance, saying the sector continues to face weak earnings visibility and a waning competitive moat. The brokerage expects revenue growth to improve in the September quarter but remains selective in its stock preferences.
Original Article
Published on Livemint
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This is a market news update from Livemint, published on 07 October 2026.
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