Goldman Sachs believes India’s consumer sector is headed for a gradual revival in FY26, driven by a combination of favorable macroeconomic tailwinds. In its latest report, the brokerage highlighted a trio of catalysts that could ignite a demand comeback:
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Income tax cuts announced in the recent Union Budget will begin putting more disposable income in consumers’ hands starting Q1FY26.
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Food inflation, which was persistently high over the past 18 months, has softened significantly in the last three months, improving rural and urban sentiment.
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A likely lower interest rate regime, as the Reserve Bank of India is expected to cut policy rates, could further ease consumer financing costs.
On stock preferences, Goldman Sachs highlighted bottom-up growth drivers as key to its conviction picks:
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GCPL, supported by growth in new household insecticide formulations.
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Tata Consumer and Marico, where the brokerage sees momentum from scaling up their ‘growth’ categories.
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Trent and Titan, driven by continued market share gains in organized retail and jewelry.
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Pidilite, on the back of expansion into non-core segments in discretionary consumption.
The brokerage sees these companies as well-positioned to capture a recovery cycle in both staples and discretionary categories in FY26.
Disclaimer: The above views are of the broker’s and not the author or the publication’s. Please make any and every investment decision after consulting your financial advisor.
