Archive · 7 Jan 2026
FMCG Sector Shows Mixed Trends in Q3FY26
The food and beverage (F&B) sector in India is expected to have a mixed performance in the third quarter of the fiscal year 2026.
Some companies, like Britannia and Varun Beverages Ltd, are expected to do really well with double-digit sales growth.
However, other companies in the home and personal care (HPC) segment, like HUL and Colgate, might not do as well and could even see a decline in sales.
The overall profit margins are expected to improve because the costs of making products are going down.
This means companies can make more money.
Some companies, like GCPL, are doing especially well because their home care business is growing a lot.
Overall, while some parts of the FMCG sector are doing great, others are facing challenges.
FMCG sector shows mixed trends in Q3FY26, with Britannia and Varun Beverages Ltd among top performers.
Double-digit sales growth expected for F&B players, while HPC entities like HUL and Colgate may see slower growth.
Margin pressure expected to ease with softening input costs, leading to higher EBITDA growth.
GCPL reports double-digit revenue growth driven by home care business, with Ebitda margins returning to normalized levels.
Management commentary on December/January trends will be key to determining volume recovery and earnings trajectory.
- Who
- FMCG sector, including Britannia, Varun Beverages Ltd, HUL, Colgate, Dabur, Marico, GCPL, and Honasa
- What
- Mixed sales growth and profitability trends in Q3FY26
- When
- Third quarter of fiscal year 2026 (Q3FY26)
- Where
- India
- Why
- Driven by varying performance across different segments and companies
Optimistic View
Cautious View
Sales Growth
Optimistic View
Double-digit sales growth expected for F&B players, with Britannia and Varun Beverages Ltd performing well.
Cautious View
Slower sales growth expected for HPC entities like HUL, Colgate, and Dabur, with potential volume declines.
Profitability
Optimistic View
Margin pressure expected to ease with softening input costs, leading to higher EBITDA growth.
Cautious View
Residual impact of GST transition may negatively impact sales growth for some players.
- Q3FY26 Growth Expectations
- 8.3% for staples coverage (ex-ITC/VBL)
- F&B Sales Growth
- Double digits year-on-year
- HPC Sales Growth
- Slower growth, with Marico, GCPL, and Honasa outperforming
- EBITDA Growth
- c.7% year-on-year in 3QFY26
- Key Outperformers
- TCPL, Britannia, Honasa, and GCPL
- GCPL Revenue Growth
- Double digits, driven by home care business
- GCPL Ebitda Margin
- 24-26% range, helped by favourable input costs
