loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations
Open ICICI 3-in-1 Account

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

Food, Alco-bev and paint companies outperformance continue

ICICIdirect Research 31 Jul 2026 DISCLAIMER

In the consumption space, food, Alcobev and paint companies have maintained their outperformance in Q1FY27 by delivering volume led revenue growth and achieving strong profitability growth on back of good expansion in the EBIDTA margins.
Amongst Food companies, Tata Consumer Products (TCPL) followed the footsteps of Nestle India by delivering double digit revenue growth of ~12% YoY revenue growth driven by 13% volume growth and EBIDTA margins improving by 84bps YoY to 13.5% on back of correction in tea/coffee prices and better mix (high margin growth businesses contribution improved to 36%).
Amongst Paint companies, market leader Asian Paints started FY27 on strong note by registering revenue/EBIDTA/PAT growth of 18%/34%/41% beating our as well as street expectations in Q1FY27. Its decorative paints biz volume growth stood at 9% in-line with the guided range, while EBIDTA margins came at 20.6%; upper end of guided range of 18-20%. Despite volatility in input prices, management has maintained its volume growth (8-10%) and EBIDTA margin (18-20%) guidance for FY27.
Alco-bev companies delivered yet another quarter of strong operating performance on back cheery growth in the Prestige & Above (P&A) segment during the quarter.

  • Allied Blenders & Distillers (ABDL) revenues grew by 6% driven by 16% growth in P&A segment (Iconiq whisky touched 3mn cases volumes; likely 15mn cases in FY27), EBIDTA margins stood at ~12%; PAT stood at Rs45cr.
  • Radico Khaitan (RKL) revenues grew by ~12%YoY driven by 36% YoY growth in P&A segment (Magic Moment Vodka grew by 43%YoY; touched 3.3mn cases in Q1; likely to touch 14-15mn cases in FY27); EBIDTA grew by 50% YoY to Rs349cr; PAT grew by 60% YoY to Rs230cr.

Amongst the home care and diversify FMCG play

  • Hindustan Unilever (HUL) registered below par performance delivering 5% volume growth against the expectation of 7% volume growth; EBIDTA margins of 22.8% were lower against expectation of 23.2-23.5% and PAT growth of just 3.5%.
  • Dabur India also registered 5% volume growth; Marginal improvement in the EBIDTA margins by 32bps YoY to 47.3%. Overall, its revenues and PAT grew by 11% and 15%, respectively.

Outlook:

  • Clear impact of volatile crude and other input prices would be visible in the Q2. The companies have opted for calibrated pricing to minimise impact on.
  • Monsoon started on weak note but covered up well in July,26 and the companies are witnessing steady demand in the rural market on back of several government initiatives.
  • If global uncertainties recede and commodity prices decline from peak, H2FY27 will be better than H1FY27. We continue to like Nestle India (Reco. – Buy, PT – Rs1,723), Tata Consumer Products (Reco. – Buy; PT – Rs1,420) and Marico (Reco. – Buy; Rs945) in the Consumer Staples space while we like Radico Khaitan (Reco. – Buy; PT – Rs5,100) in the Alco-bev space.
Also explore more on Research page

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Get it on google Play Store Download on the App Store
market app

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Get it on google Play Store Download on the App Store
market app