Sector Update | 21 November 2025

Consumer

Consumer

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Growth diversity continues; broad-based positive commentary

Jewelry and liquor categories maintain outperformance; paint shows recovery



Our widespread consumer coverage universe, a compendium of ~60 consumer

companies with combined revenue of ~INR1.2t in 2QFY26/~INR2.5t in 1HFY26

(INR4.6t in FY25) and a market cap of ~INR35t, delivered aggregate

revenue/EBITDA growth of 8%/4% in 2QFY26 and 10%/3% in 1HFY26.

Consumption trends were temporarily impacted by GST transition for FMCG

categories; hence, performance was not comparable. Jewelry and liquor

categories maintained their outperformance compared to other categories.

Paint category saw signs of demand revival at the quarter end, aided by festive

demand pickup.



Revenue/EBITDA/APAT performance of all our coverage sub-segments in

2QFY26: staples +1%/0%/0%, paint +7%/+17%/+13%, innerwear +4%/+0%/+0%,

liquor +11%/+16%/+24%, QSR +10%/+4%/NA (loss widened in 2QFY26), and

jewelry +26%/+25%/+26% YoY.



In 2QFY26, demand trends were mixed across categories.

Staples

witnessed

steady underlying demand, though the GST transition and extended monsoon

led to temporary disruptions, particularly in personal care, while packaged foods

posted a relatively better performance. Most companies expect stability from

Nov’25 onward as GST-led volatility eases and price/grammage adjustments

reach consumers. Companies have pre-loaded their winter portfolios into the

market in anticipation of a strong season and healthy offtake.

In paints,

demand

revival became evident from Sep, supported by festive buying, stronger trade

sentiment, and improved secondary movement, with further acceleration

expected in 2HFY26.

In alcobev,

spirits continued to perform well, driven by

strong P&A-led consumption and premiumization across key players, while beer

demand remained soft due to weather-led disruptions.

Innerwear

demand was

subdued during Jul-Aug but began recovering from mid-Sep, with early festive

purchases and improving sentiment.

QSR

players continued to report muted

demand despite a supportive base, with dine-in ADS remaining soft and same-

store sales largely flat to lower, barring JUBI and RBA.

Jewelry

players reported

strong revenue growth, aided by an early festive season and store additions

despite high gold prices.



Gross margin pressure persisted due to high-cost commodity inventory,

especially in agri inputs, and limited price hikes. While key commodity prices

remain volatile MoM, they are expected to stabilize in 2HFY26. EBITDA margin

was also muted in 2Q, though partially offset by cost controls. Paint companies

saw meaningful margin improvements, aided by benign RM prices and a

favorable mix. In alcobev, spirits players reported margin gains, supported by

stable ENA and glass costs, while beer margins were impacted by negative

operating leverage. Innerwear margins remained soft as higher marketing

spends offset sourcing-led gross margin benefits. QSR margins remained under

pressure due to negative operating leverage. Jewelry companies witnessed

EBITDA margin expansion despite rising gold prices, supported by a superior

product mix and a higher studded share.

Company

Staples

BRIT

CLGT

DABUR

HMN

GCPL

HUVR

ITC

JYL

MRCO

NESTLE

PG

Paints

APNT

INDIGOPN

PIDI

Liquor

UNSP

RDCK

UBBL

Innerwear

PAGE

QSR

BBQ

DEVYANI

JUBI

RBA

SAPPHIRE

WESTLIFE

Jewelry

KALYANKJ

PNG

SENCO

TTAN

Target

Price

(INR)

7,150

2,850

525

675

1,400

3,050

515

350

850

1,300

14,000

3,000

1,400

1,500

1,575

3,600

1,750

47,500

215

180

650

120

350

675

675

825

375

4,500

Reco

Buy

Buy

Neutral

Buy

Buy

Buy

Buy

Neutral

Buy

Neutral

Neutral

Neutral

Buy

Neutral

Neutral

Buy

Neutral

Buy

Neutral

Buy

Neutral

Buy

Buy

Neutral

Buy

Buy

Neutral

Buy

Naveen Trivedi – Research Analyst

(Naveen.Trivedi@motilaloswal.com

Research Analyst:

Amey Tiwari

(Amey.Tiwari@MotilalOswal.com) |

Tanu Jindal

(Tanu.Jindal@MotilalOswal.com)

Investors are advised to refer through important disclosures made at the last page of the Research Report.

Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Consumer: Growth diversity continues; broad-based positive commentary









Outliers and underperformers in 2QFY26:

Among our coverage companies,

APNT, BRIT, NEST, RDCK, JUBI, Titan and Kalyan Jewelers were the outliers,

whereas CLGT, Dabur, Page, UBBL, Sapphire Devyani, Westlife and Senco

underperformed.

Sector outlook and recommendation:

With trade stabilizing after the GST

reduction, staples are expected to see a gradual pickup in demand, supported

by a steady rural recovery and improving urban sentiment. A favorable winter

should further drive offtake of health supplements, personal care, hot

beverages, and other winter-sensitive products. Government measures to boost

rural incomes and revive urban consumption are likely to boost consumption

from 3QFY26 onward. Positive commentary for paints, liquor, innerwear, and

jewelry during the festive season is certainly a good indicator for consumption

recovery. The extended monsoon has impacted paint demand, but growth

recovery was encouraging. After registering weak numbers during the last few

quarters, it will be interesting to track if the recovery was limited to festive

period or pent-up demand is holding the similar trend. In liquor, premiumization

continues to support healthy double-digit growth in spirits. The innerwear

segment is seeing a slow but steady recovery as channel inventory normalizes,

with the winter season expected to boost thermal and winterwear demand. QSR

companies expect eating-out frequency to gradually pick up in 2HFY26. In

jewelry, the strong demand momentum is likely to remain intact during the

upcoming wedding season, aided by steady footfalls.

We downgraded Dabur to Neutral due to ongoing execution challenges and

upgraded Britannia to BUY on improving demand trends, grammage-led volume

support, and potential market share gains from local players.

Our top picks are Titan, HUL, BRIT, MRCO, PN Gadgil, and RBA.

Performance summary of all categories and key areas to monitor



Staples:

Our staple companies reported sales growth of 1% (est. 5%); excl. ITC,

revenue growth was 5%. EBITDA growth was flat (est. flat), with flat APAT YoY

(est. +2%). The GST impact was more pronounced in personal care categories

compared to packaged foods. All such transition changes will be interim and

stability is expected from Nov’25 onward. About 2-3% of revenue of most

companies was affected by the GST-led transition. Many companies have

reduced prices and started increasing grammage in low-unit packs (LUPs) to

pass on the GST benefits to consumers. Companies have also pre-loaded their

winter portfolios into the market, anticipating a strong season and a robust

offtake. Key raw material prices remained firm, thereby gross margin pressure

persisted for most consumer companies. Copra price correction can boost the

margin for Marico in the coming quarters. EBITDA margins for most companies

were under pressure in 2Q. According to NIQ data, the FMCG industry posted

13% value growth and 5.4% volume growth, with rural volume growth much

higher at 5.7% vs. 1.9% in urban areas. For staple companies under our

coverage, gross margin contracted 40bp YoY and EBITDA margin contracted

30bp YoY. Excl. ITC, GM contracted 150bp YoY and EBITDA margin contracted

90bp YoY. We downgraded Dabur to Neutral given persistent execution

challenges, and upgraded Britannia to BUY owing to improving demand trends,

benefits of grammage play and possible share gain from local and regional firms.

21 November 2025

2

Consumer: Growth diversity continues; broad-based positive commentary









In terms of revenue, Marico (+31%) and Nestle (+11%) were outliers, while

Colgate (-6%) came in below expectations.

Paints:

Paint companies reported clear signs of a demand revival in Sep-Oct’25,

supported by festive demand and improving trade sentiments. The industry

expects this uptrend to accelerate further in 2HFY26. Overall Paints category

revenue/EBITDA grew 3%/7% in 2QFY26. Asian Paints reported 6% YoY growth,

Indigo Paints 4%, Berger ~2%, Kansai Nerolac was flat, and AkzoNobel saw a 2%

decline (LFL) in revenue growth. Asian Paints and Indigo Paints saw margin

improvement, aided by benign RM prices, a favorable product mix, and

efficiency measures. Berger and AkzoNobel saw margin pressure due to weak

value growth, higher contribution from low-value products, and increased

investments in brand building and manpower. Asian Paints outperformed its

peers in 2Q, but its 2-year CAGR was on par with them.

Liquor:

Liquor universe delivered sales/EBITDA growth of 11%/14% in 2Q. The

AlcoBev sector delivered healthy growth in 2QFY26, driven by premiumization

and stable input costs. The P&A segment remained strong, with UNSP posting

8% volume growth, Radico Khaitan delivering 22% P&A growth (overall volumes

+38%), ABDL growing 30%, and Tilaknagar rising 16%. UBBL saw a 3% volume

decline but delivered strong 17% growth in premium beer. Input costs such as

ENA and glass stayed benign, though margin trends diverged: UNSP saw sharp

EBITDA margin expansion, Radico reported a 130bp gain, ABDL saw steady

improvement, and Tilaknagar, UBBL and Sula faced margin pressure due to mix

and operating leverage. Premiumization, regulatory stability, and strong brand

momentum support a positive near-term outlook. Radico outperformed its

peers in the category.

QSR:

The operating environment remained challenging through Aug and Sep, as

out-of-home consumption was impacted due to both Shraavana and Navaratri

falling in the same quarter, as well as unseasonal rains. Oct saw improvement,

backed by a change in the festive season. QSR companies expect eating-out

frequency to gradually pick up in 2HFY26. The sector benefited indirectly from

GST-related advantages through lower raw material costs, particularly in cheese

and sauces, which contributed ~50bp to margins. The benefit was passed on to

consumers through price reductions in certain SKUs. However, weak underlying

growth continued to impact operating margins, exerting pressure on restaurant

and EBITDA margins for most brands. QSR companies continued to focus on

value offerings. While delivery channels remain strong, dine-in is showing a

gradual improvement. Our coverage universe posted revenue growth of 10%

YoY in 2QFY26 vs. 11% in 1QFY26 and 5% in 2QFY25. JUBI outperformed in 2Q.

Jewelry:

The jewelry category delivered sales/EBITDA growth of 26%/12% in

2QFY26. Titan and Kalyan Jewelers outperformed the peers. Jewelry companies

continued to deliver robust sales growth despite facing challenges such as the

Shraddh period, heavy rainfall and a significant rise in gold prices (up ~45% YoY

and ~8% QoQ, crossing the INR100k mark (per 10gm) in the retail market).

Consumer demand remained strong, fueled by the early festive season. Titan

(jewelry standalone, ex-bullion), Kalyan, P N Gadgil (retail), and Senco delivered

revenue growth of 19%, 31%, 29%, and 2% in 2Q. Thangamayil sales grew 45%,

while DP Abhushan sales declined by 4%. SSSG of Titan/Kalyan/Thangamyil

stood at 14%/16%/14%, while Senco reported a same-store sales decline of 4%

in 2Q. The studded mix improved for most jewelry companies.

3

21 November 2025

Consumer: Growth diversity continues; broad-based positive commentary



Innerwear:

Innerwear demand stayed muted for most of 2QFY26, with pressure

on discretionary spending at the mass end affecting category momentum.

However, the industry witnessed recovery in late Sep, supported by improved

secondary sales and a better-than-expected festive season. Among key players,

PAGE posted 4% revenue growth, Dollar Industries 5%, Lux Industries 16%, and

Rupa 9%. E-commerce and Tier-3/4 cities led growth, followed by Tier-1, Tier-2,

and metros. Inventory management improved, with PAGE’s inventory days now

standing at normal levels. PAGE’s gross margins expanded due to sourcing

efficiencies; however, high marketing spends dented EBITDA. PAGE delivered 4%

YoY growth in revenue and flat EBITDA/APAT in 2QFY26. Overall Innerwear

category revenue/EBITDA grew 8%/-3% in 2QFY26.

Exhibit 1:

Consumer universe (~60 consumer companies) revenue growth in FY25, 2HFY26 and 2QFY26

FY25

2HFY26

2QFY26

24%

14%

2%

5%

9%

1%

-2%

2%

3%

25%

24% 25%

11%

11% 10%

8%

7%

8%

Staples

Paints

Jewelry

Liquor

QSR

Innerwear

Source: Companies, MOFSL

Exhibit 2:

Consumer universe (~60 consumer companies) EBITDA growth in FY25, 2HFY26 and 2QFY26

FY25

2HFY26

2QFY26

11%

0%

-1%

0%

-15%

1%

7%

19%

12%

25%

13%

14%

19%

3%

4%

20%

4%

-3%

Staples

Paints

Jewelry

Liquor

QSR

Innerwear

Source: Companies, MOFSL

21 November 2025

4

Consumer: Growth diversity continues; broad-based positive commentary

Consumption tracker

Our consumption tracker consists of various categories from the staple and

discretionary baskets. The index comprises a diverse range of categories, from

essentials, such as oral care, hair care, personal care, and home care, to

discretionary items such as F&B, OTC FMCG, cigarettes, footwear, paints, QSR, dairy,

liquor, jewelry and innerwear. The index is based on the weighted average revenue

growth of various companies included in their respective categories.

Exhibit 3:

Consumer Index – yearly trend

YoY Gr. (%)

4 Year CAGR (%)

55%

35%

15%

-5%

-25%

Exhibit 4:

Consumer Index – quarterly trend

YoY Gr. (%)

2-Yr CAGR (%)

4-Yr CAGR (%)

Source: Companies, MOFSL

Source: Companies, MOFSL

Category outperformance and underperformance





Moderate growth in essentials:

Most essential categories saw mid-single-digit

growth, with hair care (led by Marico) leading at 20%. However, oral care saw a

revenue decline of 1%. 2Q growth was impacted by GST trade disruption, which

is expected to normalize from mid-Nov onward. 2Q was further impacted by

unseasonal rains, which affected summer portfolio demand, particularly in the

beverages and cool talc categories.

Discretionary spending shows improvement:

Discretionary categories saw

mixed trends in 2Q. Jewelry grew 27%, liquor grew 8%, and QSR saw 9% organic

revenue growth, driven by store additions and a favorable base. For paints, the

recovery momentum is strengthening, with 3% growth.

Exhibit 5:

Category outperformance and underperformance (LTM basis)

Categories

Personal Care

Hair Care

Oral Care

Beverages

Foods

Home Care

OTC FMCG

Dairy

Cigarette

Liquor

QSR

Paints

Footwear

Jewelry

Innerwear

Category Category

Co Avg.

Out-

Co Avg.

Under-

Gr.

Gr.

Out-performers

Gr. performance Under-performers

Gr. performance

(2QFY26) (LTM)

(LTM)

(x)

(LTM)

(x)

3%

5%

Gillette

10%

2.2x

Emami (Glow and handsome) -4%

-0.9x

20%

12%

Marico (PCNO)

32%

2.7x

Emami (Kesh king)

-10%

-0.8x

-1%

0%

Dabur

6%

-32.9x

Colgate

-2%

10.6x

7%

7%

CCL

30%

4.0x

Dabur Juices

-13%

-1.8x

9%

8%

Marico (Edible oil)

24%

3.2x

Gopal Snacks

-5%

-0.7x

0%

3%

GCPL

10%

3.2x

Jyothy (HI)

-12%

-3.9x

1%

2%

Emami (Healthcare)

8%

3.7x

Dabur

-3%

-1.3x

14%

10%

Parag

14%

1.3x

Hatsun Agro

9%

0.9x

5%

11%

Godfrey Phillips

36%

3.2x

VST

-5%

-0.4x

11%

10%

Radico Khaitan

25%

2.4x

Sula Vineyards

-2%

-0.2x

10%

11%

Jubilant Foodworks

18%

1.7x

Barbeque Nation

-1%

-0.1x

3%

0%

Berger

4%

-12.4x

Asian Paints

-1%

3.4x

-1%

0%

Metro

10%

-40.5x

Mirza, Relaxo

-11%

43.3x

25%

26%

Kalyan

35%

1.3x

PN Gadgil

10%

0.4x

8%

8%

Lux Industries

17%

2.0x

Rupa

1%

0.1x

Source: Company, MOFSL

21 November 2025

5

Consumer: Growth diversity continues; broad-based positive commentary

Exhibit 6:

Volume and SSSG trends of coverage universe

Volume Growth

3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25 2QFY25 3QFY25 4QFY25 1QFY26 2QFY26

Personal Products

HUL (FMCG business)

5

4

3

2

2

2

4

3

0

2

4

0

Colgate

-5

1

3

-1

-1

1

7

8

4

0

-3

-5

Dabur - Overall

-3

1

3

3

4

3

5

-7

1

-5

-1

2

Emami - Overall

-4

-7

3

2

-1

6

9

2

4

5

-3

-16

Hair Care

Marico - FMCG

4

5

3

3

2

3

4

5

6

7

9

7

Marico - Parachute Coconut Oil

2

9

-2

1

3

2

2

4

3

-1

-1

-3

Marico -VAHO

-2

12

0

-1

2

-4

-2

-3

3

6

5

8

Home Care

GCPL - Branded Biz

3

13

10

4

5

9

8

7

0

4

5

3

Jyothy Labs - Overall

2

3

9

9

11

10

11

3

8

4

4

3

F&B

Britannia Industries - Domestic

3

3

0

0

6

6

8

8

6

3

2

-3

Marico - Saffola

13

-6

12

4

-5

5

5

0

2

-1

5

0

Nestle – Domestic*

-2

5

5

5

4

4

2

-2

3

2

2

7

Cigarette

ITC-Cig

15

12

8

5

-1

2

3

4

6

5

6

6

Godfrey Phillips

23

18

8

8

11

18

26

31

30

30

27

23

Paints

Asian Paints

0

16

10

6

12

10

7

-1

2

2

4

11

Berger paints

7

11

13

11

9

14

12

4

7

7

6

6

Liquor

United Spirits - P&A

4

10

10

4

5

4

5

-4

11

9

9

8

United Spirits - Total

-24

-27

6

1

-2

4

3

-4

10

7

9

8

Radico Khaitan - P&A

14

17

27

22

20

15

14

13

18

16

41

22

Radico Khaitan - Total

0

-1

8

-3

4

-1

-4

-2

15

27

37

38

United Breweries - P&A

13

19

21

10

14

21

44

27

33

24

46

17

United Breweries - Total

4

3

-12

7

8

11

5

5

8

5

11

-3

Innerwear

9

2

3

Page Industries

-11

-15

-12

-9

5

6

3

7

5

QSR - SSSG

Jubilant FoodWorks - LFL

0

-1

-1

-1

-3

0

3

3

13

12

12

9

Devyani - KFC

3

2

-1

-4

-5

-7

-7

-7

-4

-6

-1

-4

Devyani - PH

-6

-3

-5

-10

-13

-14

-9

-6

-1

1

-4

-4

Sapphire - KFC

3

2

0

0

-2

-3

-6

-8

-3

-1

0

-3

Sapphire - PH

-4

-4

-9

-20

-19

-15

-7

-3

5

1

-8

-8

Westlife Development - SSG

20

14

7

1

-9

-5

-7

-7

3

1

1

-3

Barbeque - SSG

-1

-3

-8

-11

-5

1

-7

-3

-2

-2

-3

-2

Burger King

9

8

4

4

3

2

3

-3

-1

5

3

3

Jewelry SSSG (%)

Titan- Tanishq

9

19

16

22

10

14

3

15

22

15

11

14

Titan- Caratlane

35

29

8

10

2

3

8

28

15

14

20

15

Kalyan

15

10

11

17

12

23

24

15

18

16

Senco

21

19

17

23

4

20

16

18

20

-4

PN Gadgil

8

8

*MOFSL assumptions; Source: Company, MOFSL

21 November 2025

6

Consumer: Growth diversity continues; broad-based positive commentary

Exhibit 7:

Revenue, EBITDA, and PAT growth trends of coverage universe

Companies name

Staples

Britannia

Colgate

Dabur

Emami

Godrej Consumer

HUL

ITC

Jyothy

Marico

Nestle

P&G Hygiene

Paints

Asian Paints

Indigo Paints

Pidilite

Liquor

United Breweries

United Spirits

Radico Khaitan

Innerwear

Page Industries

QSR

Jubilant Food.

Devyani International

Westlife Foodworld

Sapphire Foods

Restaurant Brands

Barbeque Nation

Jewelry

Titan

Kalyan

Senco

PN Gadgil

2Q

FY25

5

10

-5

3

2

2

17

0

8

1

0

-5

7

5

12

-1

21

11

9

49

1

8

1

1

16

37

31

46

Revenue growth (%)

3Q

4Q

1Q

FY25 FY25 FY26

8

5

3

5

3

2

4

4

15

4

10

-6

-3

8

10

15

11

7

19

54

9

14

6

(1)

25

40

27

24

9

-2

1

8

6

3

5

1

20

4

-1

-4

1

8

9

11

21

11

19

16

7

13

6

(2)

19

37

19

5

9

(4)

2

(0)

10

5

16

1

23

6

1

(0)

(1)

11

16

8

33

3

18

11

7

8

13

(3)

25

31

30

3

2Q

FY26

4

(6)

5

(10)

4

2

(6)

0

31

11

1

6

4

10

(3)

12

34

4

16

13

4

7

16

(0)

29

30

2

9

2Q

FY25

-10

3

-16

7

5

0

5

2

5

-5

2

-28

-1

13

23

8

35

20

1

25

(21)

(3)

0

3

8

26

107

59

EBITDA growth (%)

3Q

4Q

1Q

FY25 FY25 FY26

3

-3

2

8

-16

1

-2

-2

4

-1

20

-20

-8

8

-3

20

29

32

11

50

(5)

10

3

(7)

23

33

-41

33

2

-6

-9

4

0

2

-2

3

4

5

-19

-15

3

10

31

40

45

43

20

16

3

3

(11)

(3)

29

35

14

6

0

(11)

2

(1)

(4)

(1)

1

(7)

5

(0)

103

(4)

(6)

16

9

(9)

56

21

16

(8)

7

(9)

21

(10)

47

35

69

71

2Q

FY26

22

(6)

6

(29)

(4)

(1)

(1)

(15)

7

5

(2)

21

12

11

(43)

33

46

(0)

16

(2)

(4)

(9)

16

(17)

23

25

30

49

2Q

FY25

-9

5

-17

19

12

-2

2

1

11

-3

1

-29

-11

19

23

5

33

29

-28

NM

NM

NM

NM

NM

2

35

189

141

APAT growth (%)

3Q

4Q

1Q

FY25 FY25 FY26

4

-2

2

6

-14

3

-11

-4

4

-12

17

-24

-3

8

-25

21

30

34

-2

NM

NM

NM

NM

NM

18

44

-50

49

4

-7

-8

9

-25

3

-1

3

8

-4

-16

-31

6

20

20

62

60

52

43

NM

NM

NM

NM

NM

-2

-12

3

8

0

-5

3

-5

9

-13

111

-6

-1

19

6

-1

84

22

29

NM

NM

NM

NM

NM

2Q

FY26

23

-8

6

-27

-3

-4

1

-16

7

-5

-1

17

11

8

-64

48

69

0

NM

NM

NM

NM

NM

NM

13

53

20

36

49

43

94

104

41

13

96

50

Source: Company, MOFSL

21 November 2025

7

Consumer: Growth diversity continues; broad-based positive commentary

Exhibit 8: Gross margin and EBITDA margin trend of coverage universe (%)

Companies

Staples

Britannia

Colgate

Dabur

Emami

Godrej Consumer

HUL

ITC

Jyothy

Marico

Nestle

P&G Hygiene

Paints & Adhesives

Asian Paints

Indigo Paints

Pidilite

Liquor

United Breweries

United Spirits

Radico Khaitan

Innerwear

Page Industries

QSR

Barbeque Nation

Devyani intl.

Jubilant Food.

Restaurant Brands

Sapphire Foods

Westlife Foodworld

Jewelry

Kalyan

PN Gadgil

Senco

Titan

2QFY25

41.5

68.5

49.3

70.7

55.6

51.6

55.9

50.2

50.8

56.6

62.9

40.8

43.7

54.4

43.8

45.2

43.6

56.5

68.1

69.3

76.1

67.5

68.8

69.7

13.8

7.6

13.2

22.7

Gross Margin

3QFY25

4QFY25

1QFY26

38.7

69.9

48.1

70.3

54.1

51.3

57.6

49.8

49.5

56.4

64.8

42.4

46.6

54.3

43.1

44.7

43.0

56.3

68.2

68.7

75.1

67.8

68.6

70.1

13.1

9.8

11.6

22.0

40.1

70.6

46.7

65.9

52.5

51.4

58.8

49.2

48.6

56.2

60.2

43.9

46.8

55.0

42.1

44.5

43.5

60.9

68.5

68.5

74.5

67.8

68.2

70.0

13.8

12.0

16.8

22.8

40.3

68.9

47.0

69.4

51.9

50.1

52.4

48.0

46.9

55.2

63.6

42.7

45.9

54.1

42.5

44.0

43.0

59.1

67.7

68.2

74.1

67.7

67.4

71.6

13.9

13.2

19.1

22.5

2QFY26

41.7

69.5

49.4

71.0

52.1

51.4

58.3

48.1

42.6

54.3

61.3

43.2

44.8

55.0

42.8

47.1

43.6

59.9

66.2

67.8

74.4

68.3

67.8

72.4

12.9

11.9

17.0

21.4

2QFY25

16.8

30.7

18.2

28.1

20.8

23.8

32.6

18.9

19.6

23.3

25.6

15.4

13.9

23.8

10.7

17.8

14.6

22.5

14.9

16.3

19.4

14.2

16.1

12.7

6.5

3.6

5.4

10.5

EBITDA Margin

3QFY25

4QFY25

1QFY26

18.4

31.1

20.3

32.3

20.1

23.4

33.9

16.4

19.1

23.5

29.7

19.1

16.7

23.7

7.1

17.1

14.2

23.0

18.7

16.9

19.4

15.9

17.8

14.0

6.8

5.0

5.3

10.9

18.2

34.1

15.1

22.8

21.1

23.1

34.7

16.8

16.8

25.7

21.1

17.2

22.6

20.1

8.0

17.1

13.6

21.4

18.2

16.6

19.3

15.9

14.9

13.2

6.5

5.9

9.2

10.3

16.4

31.6

19.6

23.7

19.0

22.5

31.7

16.5

20.1

21.9

28.4

18.2

14.3

25.1

10.8

16.3

15.4

22.4

15.5

15.1

19.0

13.5

14.5

13.0

7.0

6.4

10.1

11.1

2QFY26

19.7

30.6

18.4

22.4

19.2

23.0

34.3

16.1

16.1

22.2

24.8

17.6

14.9

23.9

6.3

21.2

15.9

21.7

12.4

14.1

19.4

14.3

13.8

11.8

6.3

4.9

6.9

10.0

21 November 2025

8

Consumer: Growth diversity continues; broad-based positive commentary

Staples – Transitory disruption; positive outlook

Staple companies witnessed

stable demand trends;

however, the GST transition

and an extended monsoon

weighed on the overall

performance during the

quarter

.









Staple companies witnessed stable demand trends; however, the GST transition

and an extended monsoon weighed on the overall performance during the

quarter. The GST impact was more pronounced in personal care categories

compared to packaged foods. All such transition changes will be interim and

stability is expected from Nov’25 onward. About 2-3% of revenue of most

companies was affected by the GST-led transition. Many companies have

reduced prices and started increasing grammage in LUPs to pass on the GST

benefits to consumers. Companies have also pre-loaded their winter portfolios

into the market, anticipating a strong season and a robust offtake. The rural

market continued to outpace the urban demand in the seventh consecutive

quarter. Our staple companies reported sales growth of 1% (est. 5%); excl. ITC,

revenue growth was 5%. EBITDA growth was flat (est. flat), with flat APAT YoY

(est. +2%).

Gross margin continued to contract for most companies in 2QFY26 due to high-

cost inventories. In 2Q, margin softness was broad-based across categories but

more pronounced in the beauty & personal care segment. Through operational

cost optimization (particularly ad spends), companies were able to somewhat

manage margin pressure at the EBITDA level. With new low-cost RM inventory

coming in, the full benefits are expected to materialize in the coming quarters.

For staple companies under our coverage, gross margin contracted 40bp YoY

and EBITDA margin contracted 30bp YoY. Excl. ITC, GM contracted 150bp YoY

and EBITDA margin contracted 90bp YoY.

The rise of alternative channels such as e-commerce and quick commerce—

driven by speed, convenience, and availability—continued to gain momentum.

According to Nielsen, even though e-commerce accounts for just 11-13% of

FMCG value share in Metros, it contributes to more than half of omnichannel

growth.

According to NIQ data, the FMCG industry posted 13% value growth and 5.4%

volume growth, with rural volume growth much higher at 5.7% vs. 1.9% in urban

areas. However, the gap is narrowing as the urban areas show signs of

sequential recovery. With trade stabilizing after the GST reduction, staples are

expected to see a gradual pickup, supported by a steady rural recovery and

improving urban sentiment. A favorable winter should further drive offtake in

health supplements, winter personal care, beverages, and packaged foods.

Government measures to boost rural incomes are likely to strengthen

consumption from 3QFY26.

21 November 2025

9

Consumer: Growth diversity continues; broad-based positive commentary

Exhibit 9:

Value grew 13% YoY in 2QFY26…

Value growth (%)

10.2

7.6

12.2

9.0

6.0

6.6

3.5

5.6

13.9

10.6

11.0

12.9

9.2

Source: NIQ data, MOFSL

Exhibit 10:

…driven by volume growth of 5.4%...

Volume growth (%)

Exhibit 11:

...and price hike of 7.5%

Price growth (%)

3.1 7.5 8.6 6.4 6.5 3.1 3.9 7.1 5.1 6.0 5.4

-0.6 -0.3

9.9 7.9 6.9 4.5 0.4

-0.4

0.3

0.5

1.8 3.6 5.6 7.4 7.5

Source: NIQ data, MOFSL

Source: NIQ data, MOFSL

Exhibit 12:

Rural volume grew 5.7%

Rural volume growth (%)

Exhibit 13:

Urban volume grew 1.9%

Urban volume growth (%)

0.3 4 6.4 5.8 7.6 4.9 5.8 9.2 8.4 8.4 5.7

-3.6 -2.8

1.7 1.7 5.2 10.2 10.2 6.8 5.7 1.3 1.9 4.2 2.6 4.3 1.9

Source: NIQ data, MOFSL

Source: NIQ data, MOFSL

21 November 2025

10

Consumer: Growth diversity continues; broad-based positive commentary

Paint – Recovery signs visible in festive season

Recovery signs emerged

from late September,

supported by

festive/wedding repaint

demand, improving rural

sentiment, GST corrections,

and good monsoons.









Improvement in industry growth:

The paint sector saw a weather-impacted

quarter, with prolonged and heavy monsoons suppressing exterior repainting

demand and causing muted to low-single-digit industry value growth. Most

companies reported better volumes than value, led by economy and mid-tier

products, but premium performance was uneven. Recovery signs emerged from

late Sep, supported by festive/wedding repaint demand, improving rural

sentiment, GST corrections, and good monsoons. Industrial/auto and protective

coatings outperformed decorative across multiple players. Overall Paints

category revenue/EBITDA grew 3%/7% in 2QFY26. APNT’s revenue rose 6% YoY,

Indigo Paints revenue increased by 4%, Berger posted revenue growth of ~2%,

Kansai was flat, and Akzo revenue (LFL) declined 2%.

High competitive intensity:

Competitive pressure remained elevated across the

value chain, driven largely by aggressive discounting and promotional schemes

from new entrants, especially in the mass/economy segment. Incumbents like

Asian Paints and Berger defended their share through stronger execution,

branding, and dealer engagement, while companies such as Akzo and Kansai

focused on selective pricing actions and strengthening core markets. Extra

grammage/freebies and price corrections continued in pockets, but players

emphasized brand equity, service levels, and influencer connect over pure

discounting. Competitive intensity has stabilized but remains high, impacting

value growth and short-term profitability.

Improvement in margins:

Margins across paint companies were mixed this

quarter, reflecting the interplay of benign raw material prices, adverse weather-

led mix shifts, and competitive intensity. Asian Paints and Indigo Paints reported

healthy gross margin expansion, supported by softer input costs, better sourcing

efficiencies, and stronger premium mix. In contrast, Berger and AkzoNobel saw

margin pressure due to weak value growth, higher contribution from low-value

products, and increased investments in brand building and manpower. Kansai

Nerolac’s margins remained stable, with improvements in industrial coatings

offset by softness in decorative.

Near-term outlook:

The paint sector’s outlook is uniformly constructive, with all

companies guiding for a strong recovery from 3Q and a much stronger 4Q, as

weather normalizes, festive and wedding repainting picks up, and rural

sentiment improves. AkzoNobel expects double-digit volume growth in the next

quarter, supported by a strong order book, while Asian Paints is guiding for mid-

single-digit value growth for the year with margins stable in the 18-20% band.

Berger anticipates mid-single-digit growth in 3Q and double-digit growth in 4Q,

alongside margin expansion toward 17%. Indigo Paints remains most optimistic,

expecting double-digit to high-double-digit growth by 4Q and peak margins,

driven by mix improvement. Kansai sees demand strengthening in Nov-Dec, with

a materially better 4Q, led by industrial coatings. Companies expect benign RM

costs, improving mix, and operating leverage to support margin stability or

gradual expansion in 2HFY26.

21 November 2025

11

Consumer: Growth diversity continues; broad-based positive commentary

Exhibit 14:

Recovery momentum strengthens in paint cos.

Paint Industry growth (%)

Exhibit 15:

Average GP margin at ~41.7%

Average GP margin (%)

Source: Industry

Source: Industry

Exhibit 16:

Annual and quarterly trajectory of paint companies

Sales (INR b)

Asian Paint

Berger Paints

Kansai Nerolac

Akzo Nobel

Indigo Paints

Sales growth (%)

Asian Paint

Berger Paints

Kansai Nerolac

Akzo Nobel

Indigo Paints

GP margin (%)

Asian Paint

Berger Paints

Kansai Nerolac

Akzo Nobel

Indigo Paints

EBITDA (INR b)

Asian Paint

Berger Paints

Kansai Nerolac

Akzo Nobel

Indigo Paints

EBITDA growth (%)

Asian Paint

Berger Paints

Kansai Nerolac

Akzo Nobel

Indigo Paints

EBITDA margin (%)

Asian Paint

Berger Paints

Kansai Nerolac

Akzo Nobel

Indigo Paints

FY19

FY20

FY21

FY22

FY23

192.4

60.6

54.2

29.2

5.4

14

17

16

7

33

41.5

46.4

43.4

42.1

44.3

37.7

9.3

7.5

3.4

0.5

18

16

-5

15

10

19.6

15.4

13.9

11.7

10.1

202.1

63.7

52.8

26.6

6.2

5

5

-3

-9

17

43.7

48.4

45.0

45.8

48.5

41.6

10.6

8.0

3.8

0.9

11

14

7

11

15

20.6

16.7

15.2

14.2

14.6

217.1

68.2

50.7

24.2

7.2

7

7

-4

-9

16

44.3

50.2

45.6

45.4

47.9

48.6

11.9

8.6

3.4

1.2

17

12

7

-10

17

22.4

17.4

17.0

14.1

16.9

291.0

87.6

63.7

31.5

9.1

34

29

26

30

25

37.1

45.9

38.9

40.3

43.3

48.0

13.3

6.5

4.3

1.4

-1

12

-25

27

15

16.5

15.2

10.2

13.7

15.0

344.9

105.7

75.4

38.0

10.7

19

21

18

21

18

38.7

43.5

37.6

39.8

44.5

62.6

14.9

8.2

5.3

1.8

30

12

26

21

17

18.2

14.1

10.8

13.8

16.9

FY24

354.9

112.0

78.0

39.6

13.1

3

6

3

4

22

43.4

47.1

42.0

43.9

47.6

75.8

18.6

10.3

6.3

2.4

21

25

26

20

18

21.4

16.6

13.2

16.0

18.2

FY25

339.1

115.4

78.2

40.9

13.4

-4

3

0

3

3

42.4

41.4

35.2

43.3

46.0

60.1

18.6

9.4

6.4

2.3

-21

0

-8

1

17

17.7

16.1

12.0

15.7

17.4

2QFY25

80.3

27.7

19.5

8.5

3.0

-5

0

0

3

7

40.8

41.7

34.0

43.7

43.7

12.4

4.3

2.1

1.5

0.4

-28

-8

11

15

-1

15.4

15.6

10.9

14.9

13.9

3QFY25

85.5

29.8

19.2

10.5

3.4

-6

3

0

2

-3

42.4

41.6

35.2

41.9

46.6

16.4

4.7

2.4

1.7

0.6

-20

-2

12

16

-8

19.1

15.9

12.2

15.9

16.7

4QFY25

83.6

27.0

18.2

10.2

3.9

-4

7

3

5

1

43.9

42.7

34.6

43.2

46.8

14.4

4.3

1.7

1.6

0.9

-15

22

9

16

3

17.2

15.8

9.1

15.6

22.6

1QFY26

89.4

32.0

21.6

10.0

3.1

0

4

1

-4

-1

42.7

41.4

36.1

42.8

45.9

16.2

5.3

3.0

1.3

0.4

-4

1

14

14

-6

18.2

16.5

14.0

13.5

14.3

2QFY26

85.3

28.3

19.5

8.3

3.1

6

2

0

-2

4

43.2

41.6

35.2

41.3

44.8

15.0

3.5

2.2

1.1

0.5

21

-19

11

13

12

17.6

12.5

11.0

13.3

14.9

21 November 2025

12

Consumer: Growth diversity continues; broad-based positive commentary

Innerwear – Muted quarter; expect recovery in 2HFY26

Innerwear demand stayed

muted for most of 2QFY26,

with pressure on

discretionary spending at

the mass end affecting

category momentum.









Subdued demand trends:

Innerwear demand stayed muted for most of 2QFY26,

with pressure on discretionary spending at the mass end affecting category

momentum. However, the industry witnessed recovery from late September,

supported by improved secondary sales and a better-than-expected festive

season. Page Industries saw steady festive demand with no post-festive

moderation. Rupa reported a strong pickup in primary sales, driven by better

rural traction and improving offtake across mid-premium categories. Dollar

Industries benefited from robust thermal demand and continued distribution

expansion, resulting in healthy double-digit volume gains. Lux also saw selective

recovery, aided by early winter stocking and traction in its mid-premium

offerings. The overall Innerwear category revenue/EBITDA grew 8%/-3% in

2QFY26. PAGE reported weaker revenue growth of 4% YoY. Lux

Industries/Rupa/Dollar reported 16%/9%/5% YoY growth in revenue.

Inventory rationalization:

Inventory levels across the innerwear sector

remained mixed in 2QFY26 as companies balanced festive-season build-up with

ongoing channel rationalization. Page Industries maintained a disciplined

inventory cycle at 67 days (vs. 64 at the start of the year), aided by tighter

partner-level stocking. Dollar saw a seasonal uptick as it prepared for winter

demand, with inventory days at 119, though its cash conversion cycle continued

to improve. Lux Industries’ inventory days rose to 105 (vs. 91 last year), largely

due to stocking for the launch of Lux Nitro. Rupa continued to operate with

elevated working capital at 235 days, though channel inventory remained below

normal as the company focuses on faster liquidation and aims to reduce the

cycle by 20–25 days by year-end.

Mix margin performance:

Margin performance remained uneven across the

innerwear sector, shaped by differing pricing strategies and category mixes.

Dollar delivered robust margin expansion on the back of strong operating

leverage, cost discipline, and moderated ad spends. Lux posted a healthy 2Q

recovery, though YTD margins remain compressed due to elevated brand

investments and new-launch-related costs. Page Industries continued to

outperform the sector with best-in-class EBITDA margins of 19–21%, supported

by stable input costs and sustained productivity gains. In contrast, Rupa saw a

meaningful margin decline as aggressive pricing, higher promotions, and

increased overheads weighed on profitability.

Outlook –

Innerwear companies expect a stronger 2HFY26, supported by a

healthier festive season, winter-led thermal demand, and gradually improving

rural sentiment. Dollar and Rupa are optimistic about a meaningful pickup in

thermal sales, which should also aid margin recovery. Page remains confident of

achieving near double-digit growth, underpinned by new product launches,

capacity additions, and a better demand environment. Lux expects sustained

traction from its refreshed brand portfolio and continued scale-up across omni-

channel platforms.

21 November 2025

13

Consumer: Growth diversity continues; broad-based positive commentary

Exhibit 17:

Yarn prices have remained stable over the last two years

NNS Cotton Yarn Hosiery Yarn Carded 30 price INR/kg India

430.0

360.0

290.0

220.0

150.0

222

Source: Bloomberg, MOFSL

Exhibit 18:

Annual and quarterly trajectory of innerwear companies

FY19

28.5

12.1

10.3

11.1

12

12

11

-4

58.0

60.7

57.9

71.7

6.2

1.8

1.4

1.7

14

17

10

2

21.6

14.9

13.3

15.3

FY20

29.5

16.6

9.7

9.4

3

38

-6

-15

55.5

70.8

53.6

74.1

5.3

2.7

1.1

1.2

-14

50

-23

-27

18.1

16.3

10.9

13.2

FY21

28.3

19.4

10.4

12.9

-4

16

7

37

55.4

66.8

57.1

65.1

5.3

3.8

1.4

2.6

-1

41

31

105

18.6

19.7

13.3

19.9

FY22

38.9

22.7

13.4

14.3

37

17

29

11

56.0

72.3

54.2

72.6

7.9

4.7

2.2

2.7

49

24

57

4

20.2

20.8

16.2

18.7

FY23

47.1

23.7

13.9

11.2

21

4

4

-22

55.8

57.2

45.6

59.9

8.6

2.2

1.0

0.9

10

-54

-54

-67

18.3

9.2

7.1

7.9

Sales (INR b)

Page

Lux

Dollar

Rupa

Sales growth (%)

Page

Lux

Dollar

Rupa

GP margin (%)

Page

Lux

Dollar

Rupa

EBITDA (INR b)

Page

Lux

Dollar

Rupa

EBITDA growth (%)

Page

Lux

Dollar

Rupa

EBITDA margin (%)

Page

Lux

Dollar

Rupa

FY24

45.7

23.2

15.5

11.9

-3

-2

11

7

54.4

53.4

53.7

50.1

8.6

2.0

1.5

1.2

0

-7

55

31

18.8

8.7

10.0

9.7

FY25

49.3

25.8

16.8

12.3

8

11

9

3

56.8

55.7

53.5

53.9

10.6

2.3

1.8

1.3

23

16

14

11

21.5

9.1

10.4

10.6

2QFY25 3QFY25 4QFY25 1QFY26 2QFY26

12.5

6.7

4.5

2.9

11

5

8

-1

56.5

56.6

53.2

59.8

2.8

0.6

0.5

0.3

20.1

10

17

-12

22.5

9.4

10.9

9.6

13.1

5.5

3.8

3.1

7

22

15

0

56.3

55.5

56.6

50.7

3.0

0.5

0.4

0.4

32

42

27

15

23.0

9.1

10.8

12.0

11.0

8.2

5.4

4.1

11

16

10

5

60.9

53.3

47.9

44.4

2.4

0.8

0.5

0.5

43

0

-2

14

21.4

9.3

10.0

11.1

13.2

6.0

3.8

1.8

3

13

19

-11

59.1

61.6

57.8

75.4

2.9

0.4

0.4

0.1

21

-22

24

-32

22.4

5.9

10.5

6.6

12.9

7.8

4.7

3.2

4

16

5

9

59.9

54.4

56.3

52.1

2.8

0.4

0.6

0.2

-0.4

-30

26

-22

21.7

5.7

13.0

6.9

Source: Company, MOFSL

21 November 2025

14

Consumer: Growth diversity continues; broad-based positive commentary

Liquor – Healthy P&A growth; beer soft on weather impact

The alcobev sector reported a

broadly resilient demand

environment in 2QFY26, led

by strong traction in premium

spirits and improving

consumption trends across

key states.







Healthy demand trends in 2Q

– The alcobev sector reported a broadly resilient

demand environment in 2Q, led by strong traction in premium spirits and

improving consumption trends across key states. UNSP reported 8% P&A

volume growth, led by strength in Andhra Pradesh and a favorable base, though

partially offset by the Maharashtra duty hike. Radico Khaitan reported record

volume growth (+38%), with strong momentum in P&A (+22%), citing steady

premium-led demand. ABDL continued to deliver healthy P&A momentum

(+30% YoY). Tilak Nagar sustained its positive momentum (+16% YoY), aided by

strong trends in southern markets. UBBL volumes declined 3% due to an

unusually weak summer and extended monsoon; however, premium volumes

rose 17% YoY. Sula saw mid-single-digit underlying growth in its own brand

(excl. Telangana), with wine tourism maintaining double-digit traction. Liquor

universe delivered sales/EBITDA growth of 11%/14% in 2Q.

Stable raw material costs, divergent margin trends

– Margin performance

across alcobev companies remained broadly stable or improved in 2QFY26,

supported by benign input costs and strong premium mix gains. United Spirits

saw EBITDA margin expansion (+340bp YoY to 21.2%), led by cost efficiencies.

Radico Khaitan posted a healthy 130bp margin expansion to 15.9%, with a

guidance of 125-150bp annual improvement, aiming for mid-to-late-teen

margins over the medium term. ABDL’s margins improved from 11.9% to 12.7%,

and it is targeting over 15% through premiumization and efficiency gains.

Tilaknagar Industries margins declined 250bp YoY to 15.1%. UBL margins

contracted ~440bp due to negative operating leverage. Sula witnessed sharp

margin erosion of 590bp YoY due to adverse mix shift, reduction in the Wine

Tourism sourcing model and carryover of high-cost liquid inventory.

State policy changes and industry impact



UNSP

– Maharashtra policy headwinds remain a significant challenge,

though UNSP outperformed the industry in 2Q by reconfiguring its value

chain to partly offset the ~35% consumer price increase. The competitive

impact of the recently launched, aggressively priced Maharashtra Made

Liquor (MML) remains uncertain, with the company expecting that it will

take 1-2 quarters to assess whether volumes are being sourced from

country liquor upgraders or from the Prestige IMFL segment. Andhra

Pradesh, now after a full year of policy normalization, is expected to

maintain strong growth momentum.



Radico Khaitan –

The shift in Andhra Pradesh’s route-to-market (RTM),

allowing private retail participation, has been a major catalyst for Radico’s

turnaround in the Regular segment. The company’s market share in the

state surged from ~10% to over 30% in 2QFY26, positioning it as the leading

spirits player. In contrast, Maharashtra’s industry volumes contracted ~25%

due to steep consumer price hikes (INR80-100 per bottle), resulting in a

~20% decline for Radico in the state. Management sees Delhi and

potentially Bihar (post elections) as high-impact markets if they adopt RTM

models similar to UP, which could structurally lift long-term volume growth.



UBBL –

Beer category performance remains heavily impacted by state-level

taxation changes. Sharp tax hikes have led to double-digit volume declines

in key states such as Odisha, Karnataka, and Telangana. In contrast,

15

21 November 2025

Consumer: Growth diversity continues; broad-based positive commentary



Maharashtra—where beer taxes remained unchanged—delivered strong

growth of 15-16% for UBBL in the quarter. The company also undertook

selective price reductions in Meghalaya following a duty cut to protect

volumes. In Telangana, the category decline has been amplified by elevated

consumer prices post-EBP increase and ongoing changes in retail licensing,

which are expected to stabilize by Dec.



Others –

ABDL saw short-term disruption in Telangana due to retail licensing

changes, putting pressure on Mass Premium volumes, while the MML policy

further weighed on industry demand. However, policy reforms in Andhra

Pradesh aided a sharp rebound, with volumes more than doubling, and

overdue payments in Telangana have begun flowing. Sula faced a temporary

RTM disruption in Telangana—its third-largest market—owing to retail

licence expiries and destocking, though Maharashtra showed improving

trends, with wine excluded from recent excise revisions. Tilaknagar

benefited strongly from Andhra Pradesh’s retail liberalization and extended

store hours, driving >20% volume growth and a market share uptick to

~12%, even as Maharashtra’s IMFL industry contracted ~20% under the new

MML regime, prompting TI to adopt a cautious stance on participation.

Near-term outlook:

The sector outlook for 2HFY26 remains constructive,

supported by festive and wedding-led consumption despite state-specific

headwinds. UNSP stays cautiously optimistic, leveraging premiumisation and on-

premise recovery, while Radico expects strong P&A momentum, driven by

premium launches and a strengthening balance sheet. UBBL anticipates a post-

monsoon rebound in beer volumes, along with medium-term category growth.

Tilaknagar’s pipeline remains robust with upcoming brand launches and capacity

expansion, and ABDL expects Telangana normalization and festive demand to

drive a recovery in Mass Premium while advancing its export and capex plans.

21 November 2025

16

Consumer: Growth diversity continues; broad-based positive commentary

Exhibit 19:

Liquor companies’ annual and quarterly trajectory

Volume growth (%)

UBBL

13

-3

UNSP

5

-2

Radico Khaitan

11

12

Allied Blenders & Distillers NA

NA

Tilaknagar Industries

12

-3

Sula Vineyards

NA

NA

Premium Category Volume growth (%)

UBBL

NA

NA

UNSP

12

-2

Radico Khaitan

21

15

Allied Blenders & Distillers NA

NA

Tilaknagar Industries

NA

NA

Sula Vineyards

NA

NA

Sales (INR b)

UBBL

64.8

65.1

UNSP

89.8

90.9

Radico Khaitan

21.0

24.3

Allied Blenders & Distillers 9.2

30.0

Tilaknagar Industries

6.6

6.5

Sula Vineyards

-

4.9

Sales growth (%)

UBBL

15

1

UNSP

10

1

Radico Khaitan

15

16

Allied Blenders & Distillers NA

NA

Tilaknagar Industries

14

-1

Sula Vineyards

NA

NA

GP margin (%)

UBBL

53.6

51.6

UNSP

48.8

44.8

Radico Khaitan

51.4

48.3

Allied Blenders & Distillers NA

NA

Tilaknagar Industries

51.7

46.0

Sula Vineyards

NA

53.1

EBITDA (INR b)

UBBL

11.4

8.8

UNSP

12.9

15.1

Radico Khaitan

3.5

3.7

Allied Blenders & Distillers NA

NA

Tilaknagar Industries

0.6

-0.5

Sula Vineyards

NA

0.5

EBITDA growth (%)

UBBL

26

-23

UNSP

25

17

Radico Khaitan

28

8

Allied Blenders & Distillers NA

NA

Tilaknagar Industries

1853

P/L

Sula Vineyards

NA

NA

EBITDA margin (%)

UBBL

17.6

13.5

UNSP

14.3

16.6

Radico Khaitan

16.5

15.3

Allied Blenders & Distillers NA

NA

Tilaknagar Industries

8.5

-8.0

Sula Vineyards

NA

10.1

FY19

FY20

FY21

-38

-11

-8

NA

-15

NA

NA

-9

-8

NA

NA

NA

42.4

78.9

24.0

23.5

5.5

3.9

-35

-13

-1

NA

-16

-20

52.2

43.4

49.9

39.5

49.5

59.2

3.8

9.9

4.1

1.9

0.5

0.6

-56

-34

10

NA

LP

25

9.0

12.5

17.0

8.3

9.9

15.8

FY22

33

-22

18

13

23

NA

NA

15

20

12

NA

NA

58.4

94.2

28.7

26.9

7.8

4.2

38

19

20

14

43

10

49.9

43.9

45.0

39.4

51.2

72.4

7.0

15.1

4.0

2.0

1.1

1.1

83

53

-2

1

107

86

11.9

16.0

14.0

7.3

14.3

26.7

FY23

31

9

7

12

43

19

NA

12

20

15

NA

24

FY24

2

2

2

-2

16

7

3

5

20

1

NA

13

81.2

106.9

41.2

33.3

13.9

5.7

8

3

31

6

20

10

42.7

43.4

42.5

37.0

49.2

76.4

7.0

17.1

5.1

2.4

1.9

1.8

13

20

41

31

35

12

8.6

16.0

12.3

7.3

13.3

31.0

FY25

6

4

9

4

7

NA

32

5

15

13

NA

NA

89.1

115.7

48.5

35.2

14.3

5.8

10

8

18

6

3

2

43.0

44.7

42.8

41.9

49.3

76.2

8.4

20.6

6.7

4.3

2.5

1.5

21

20

33

78

37

-15

9.4

17.8

13.9

12.3

17.8

25.7

2QFY25 3QFY25 4QFY25 1QFY26 2QFY26

5

-4

-2

-

3

-8

27

-4

13

9

NA

4

21.1

28.4

11.2

8.7

3.7

1.3

12

-1

21

2

6

-1

43.8

45.2

43.6

42.9

52.2

78.9

2.3

5.1

1.6

1

0.7

0.3

23

8

35

45

39

-24

10.7

17.8

14.6

11.9

17.6

25.4

8

10

15

11

2

1

33

11

18

14

NA

3

20.0

34.3

12.9

9.7

3.4

2.0

10

15

11

9

-10

-1

43.1

44.7

43.0

42.8

46.5

67.6

1.4

5.9

1.8

1.2

0.6

0.5

-3

20

29

98

17

-26

7.1

17.1

14.2

12.0

17.7

26.5

5

7

27

21

20

NA

24

9

16

33

NA

NA

23.2

29.5

13.0

9.2

4.1

1.3

9

11

21

20

13

3

42.1

44.5

43.5

43.4

48.8

82.8

1.9

5.1

1.8

1.4

0.8

0.3

31

40

45

127

63

-3

11

9

37

16

26

NA

46

9

41

44

NA

NA

28.6

25.5

15.1

9.2

4.1

1.1

16

8

33

22

31

-9

42.5

44.0

43.0

43.2

51.9

74.0

3.1

4.2

2.3

1.1

0.9

0.2

9

-9

56

51

88

-46

-3

8

38

8

16

NA

17

8

22

30

NA

NA

20.5

31.7

14.9

9.9

4.0

1.3

-3

12

34

14

6

-1

42.8

47.1

43.6

44.4

48.3

69.0

1.3

6.7

2.4

1

0.6

0.3

-43

33

46

21

-9

-24

75.0

103.7

31.4

31.5

11.6

5.2

28

10

10

17

49

22

43.1

41.5

41.8

37.3

47.1

74.2

6.2

14.2

3.6

1.8

1.4

1.6

-12

-6

-11

-6

22

39

8.2

13.7

11.4

5.9

11.8

30.5

8.0

10.8

6.3

17.1

16.3

21.2

13.6

15.4

15.9

14.8

12.1

12.7

19.3

23.1

15.1

22.6

16.7

19.4

Source: Company, MOFSL

21 November 2025

17

Consumer: Growth diversity continues; broad-based positive commentary

QSR – Unit economics remain weak









Demand remained challenging:

The operating environment remained

challenging through Aug and Sep, as out-of-home consumption was impacted by

both Shraavana and Navaratri falling in the same quarter, as well as unseasonal

rains. Oct saw improvement, backed by a change in the festive season. QSR

companies expect eating-out frequency to gradually pick up in 2HFY26. The

sector benefited indirectly from GST-related advantages through lower raw

material costs, particularly in cheese and sauces, which contributed ~50bp to

margins. The benefit was passed on to consumers through price reductions in

certain SKUs. QSR companies continued to focus on value offerings. While

delivery channels remained strong, dine-in showed a gradual improvement. Our

coverage universe posted revenue growth of 10% YoY in 2QFY26 vs. 11% in

1QFY26 and 5% in 2QFY25. JUBI delivered robust LFL growth of 9% and RBA

recorded SSSG of 3%, while Westlife/Devyani KFC/Devyani PH/Sapphire KFC/

Sapphire PH/UFBL posted same-store sales decline of 3%/4%/4%/3%/8%/2%

YoY.

Store additions continue:

The store addition pace remained steady during the

quarter. While most QSR names continued to see double-digit store growth YoY,

it remained muted for PH. That said, QSR companies have maintained their

annual store addition guidance for FY26.

Pressure on profitability:

Given the continued softness in underlying growth,

operating margins remained impacted, which further exerted pressure on

restaurant and EBITDA margins for most brands. Both restaurant margin and

EBITDA margin (pre-Ind AS) continued to contract YoY and QoQ in 2QFY26.

EBITDA margin (pre-Ind AS) expanded YoY for JUBI and RBA. However, with a

gradual demand recovery and improvement in ADS, margins should expand

going forward.

Near-term outlook:

Demand trends in 2QFY26 remained broadly in line with

recent quarters, showing no meaningful pickup. However, Oct demand pickup

suggests an encouraging start to 3QFY26, with QSR players witnessing gradual

demand recovery. A favorable base is likely to support near-term growth. With

dine-in footfalls gradually recovering, the gap between dine-in and delivery

revenue is expected to narrow, while delivery continues to hold strong.

Supported by improving macros, we expect higher dine-out frequency to aid

SSSG and overall industry growth. Continued menu innovation and targeted

dine-in activation efforts will be key to further strengthening footfalls and order

volumes.

Exhibit 20:

No material uptick in demand in the last four to five quarters (%)

FY19

Sapphire - KFC

Revenue growth (%)

KFC - SSSG (%)

KFC - Stores

Store growth (%)

KFC - ADS ('000')

Gross margin (%)

RoM Pre - Ind AS (%)

0

14

158

0

125.2

65.4

12.7

FY20

18

5

187

18

129.6

65.4

13.0

FY21

-24

-30

203

9

106.3

67.9

14.0

FY22

75

52

263

30

130.0

68.4

19.5

FY23

40

15

341

30

135.0

66.6

19.4

FY24

18

-1

429

26

125.0

68.2

19.7

FY25 2QFY25 3QFY25 4QFY25 1QFY26 2QFY26

11

-4

502

17

114.0

68.2

17.3

9

-8

461

21

111

68.3

16.5

12

-3

496

22

115

68.2

18.2

12

-1

502

17

108

68.0

15.7

11

0

510

15

116

67.1

15.7

7

-3

529

15

103

67.2

13.8

21 November 2025

18

Consumer: Growth diversity continues; broad-based positive commentary

FY19

Sapphire - Pizza Hut

Revenue growth (%)

PH - SSSG (%)

PH - Stores

Store growth (%)

PH - ADS ('000')

Gross margin (%)

RoM Pre - Ind AS (%)

Sapphire Consol

Revenue growth (%)

Store

Store growth (%)

Gross margin (%)

EBITDA (INRm) (Pre -Ind AS)

EBITDA margin (%) (Pre -Ind AS)

EBITDA margin (%) (Post -Ind AS)

Devyani - KFC

Revenue growth (%)

KFC - SSSG (%)

KFC - Stores

Store growth (%)

KFC - ADS ('000')

Gross margin (%)

RoM Pre - Ind AS (%)

Devyani - Pizza Hut

Revenue growth (%)

PH - SSSG (%)

PH - Stores

Store growth (%)

PH - ADS ('000')

Gross margin (%)

RoM Pre - Ind AS (%)

Devyani consol

Revenue growth (%)

Store

Store growth (%)

Gross margin (%)

EBITDA (INRm) (Pre -Ind AS)

EBITDA margin (%) (Pre -Ind AS)

EBITDA margin (%) (Post -Ind AS)

Restaurant brand (Consol)

Revenue growth (%)

Store

Store growth (%)

Gross margin (%)

EBITDA (INRm) (Pre -Ind AS)

EBITDA pre-Ind AS (%)

EBITDA margin (%)

Restaurant brand (India)

Revenue growth (%)

SSSG (%)

Store

Store growth (%)

0

5

153

0

61.3

73.9

7.5

0

374

0

66.9

435

3.6

12.2

31

5

134

35

114

66.0

18.4

9

5

268

10

45

74.0

15.5

18

566

29

70.3

969

7.4

21.3

67

317

0

63.6

152

0.0

12.5

67

0

187

45

FY20

9

-5

174

14

57.9

76.2

7.3

12

425

16

67.8

662

4.9

13.8

31

3

172

28

117

64.8

16.0

-1

-4

269

0

44

74.9

10.5

16

610

8

69.6

575

3.8

16.8

33

435

37

64.2

202

1.2

12.4

33

3

260

39

FY21

-34

-35

162

-7

48.2

76.1

5.1

-24

435

1

69.6

382

3.7

12.2

6

-34

264

53

100

67.7

18.3

-31

-30

297

10

35

74.2

12.9

-25

692

14

69.6

842

7.4

20.7

19

439

1

60.5

(619)

-6.2

2.5

-41

-37

265

2

FY22

67

42

219

35

57.0

75.5

13.4

69

579

32

69.3

1,808

10.5

17.7

89

49

364

38

113

69.3

21.3

85

45

413

39

43

75.6

16.3

84

938

36

71.2

2,995

14.4

22.8

48

492

12

63.1

(416)

-2.8

6.5

91

47

315

19

FY23

41

12

286

31

58.0

74.7

13.3

32

743

30

67.3

2,647

11.7

18.9

45

16

490

35

117

68.3

20.2

32

4

506

23

42

74.4

14.5

44

1,243

33

70.0

4,348

14.5

21.9

38

577

17

64.2

(595)

-2.9

5.4

53

23

391

24

FY24

-1

-16

319

12

46.0

75.6

4.9

15

868

19

68.7

2,717

10.5

17.8

15

-5

596

22

105

69.5

19.6

1

-11

567

12

37

75.9

7.2

19

1,782

21

70.3

3,807

10.7

18.3

19

630

9

64.2

204

0.8

10.9

22

3

455

16

FY25 2QFY25 3QFY25 4QFY25 1QFY26 2QFY26

5

-1

334

5

46.0

75.8

2.4

11

963

12

68.5

2,616

9.1

16.5

7

-6

696

17

94

68.9

17.4

3

-4

630

11

34

76.3

2.7

39

2,039

16

68.9

4,943

10.0

17.0

5

681

8

65.1

370

1.5

10.7

12

1

513

13

3

-3

323

4

47.0

76.5

4.1

8

909

12

68.8

590

8.5

16.1

7

-7

645

19

96

69.0

16.6

0

-6

593

11

35

76.7

3.1

49

1,921

41

69.3

1,143

9.4

16.3

1

638

10

64.9

38

0.6

9.7

9

-3

464

15

10

5

339

6

48.0

75.6

4.7

14

963

13

68.6

811

10.7

17.8

9

-4

689

17

96

68.6

17.2

6

-1

644

14

35

76.2

2.1

54

2,032

40

68.7

1,306

10.1

16.9

6

682

9

65.6

133

2.1

11.4

11

-1

510

16

5

1

334

5

42.0

74.8

-4.6

13

963

10

68.2

508

7.1

14.9

3

-6

696

17

83

68.3

16.2

8

1

630

11

31

75.6

0.7

16

2,039

14

68.5

1,081

8.9

16.6

6

681

8

65.3

146

2.3

12.2

12

5

513

13

-6

-8

336

5

44.0

74.6

-2.5

8

974

10

67.4

548

7.1

14.5

10

-1

704

14

98

67.1

15.5

3

-4

618

8

33

74.7

-1.1

11

2,145

17

68.2

1,095

8.1

15.1

8

683

8

65.4

119

1.7

10.8

13

3

519

14

-6

-8

338

5

42.0

74.4

-1.8

7

997

10

67.8

548

7.4

13.8

5

-4

734

14

89

68.1

14.1

1

-4

621

5

33

74.7

-0.2

13

2,184

14

67.8

934

6.8

14.1

11

694

9

66.1

113

1.6

10.8

16

3

533

15

21 November 2025

19