Nomura expects the consumer sector to enter 2026 with most macro and category-level drivers aligned for a gradual but meaningful improvement in growth. In its latest outlook, the brokerage said it anticipates CY26/FY27 staples volume, sales and EBITDA growth at 6%, 9% and 12% year-on-year respectively — all above the past decade’s average. The firm highlighted that gross margin and operating margin expansion of 57 basis points and 66 basis points respectively should support a healthier profitability trajectory across leading FMCG companies.
According to Nomura, pricing-led growth is likely to remain limited in the near term due to competitive intensity and the high base of previous years. However, pricing power is expected to make a comeback as demand conditions strengthen, input costs stabilise and companies benefit from stronger distribution, premiumisation and rural recovery. Nomura emphasised that both staples and discretionary categories are set for a more favourable operating environment after an extended period of uneven consumption trends.
For consumer staples, Nomura’s preferred picks are Godrej Consumer, Tata Consumer, Marico and Britannia. In consumer discretionary, it favours Titan and Asian Paints, citing their brand leadership, premium customer base and strong execution capabilities.
Disclaimer: The views and recommendations above are those of Nomura. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
