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

Open ICICI
3-in-1 Account

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

+91

BLOG

Food & D2C companies registered stellar operating performance

ICICIdirect Research 24 Jul 2026 DISCLAIMER

Nestle India registered 2nd consecutive quarter of above 20% revenue growth. Its domestic business grew by 25% (driven by 18-19% volume growth) with all four business categories delivering double digit revenue growth. EBIDTA margins beat our expectation at 24%. Overall EBIDTA and PAT grew by 40% and 49% respectively in Q1FY27.
Though revenue growth likely to moderate on high base, we believe demand momentum in food and premium categories to continue driven by GST led benefits and strong traction on e-comm/quick-comm in the coming quarters. We recommend Buy with a PT – Rs1,723.
Bluestone Lifestyle & Jewellery (Bluestone), a D2C based jewellery player, maintained its robust growth momentum delivering 50% revenue growth (driven by 39% SSSG) and 458bps YoY improvement in the EBIDTA margins to 11.3% in Q1FY27.
Management is confident of delivering ~50% revenue growth driven by 30% SSSG. EBIDTA margins will consistently improve on better operating leverage. We expect EBIDTA margins to touch 14% in FY28E. We retain Buy on Bluestone with a PT of Rs945.
Arvind Fashion, D2C based apparel player, registered better than expected performance with revenues growing by 15%YoY (driven by ~12% SSSG, return to double digit after 5 quarters). EBIDTA margins expanded by 43bps YoY to 12.5%; largely in guided range. EBIDTA grew by 20% YoY.
The company has been consistently delivering low 12-15% revenues growth driven by strong growth in its retail and D2C biz. We expect this momentum to continue in the coming years. EBIDTA margins will continue to expand in guided range of 30-40bps. Stock valuation at ~10x makes it a good play in the branded apparel space with a growth visibility. We retain Buy with a PT of Rs595.

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere