loader2
Login 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

Market Wrap Write Up

ICICIdirect Research 10 Oct 2025 DISCLAIMER

Consumption: Q2 business updates & preview
Festive season backed by GST cut has managed to significantly uplift consumer durables demand across product categories with Navrartri-Dusshera season sales scaling decade high. Reports suggest 25% to 100% growth being witnessed across brands and retailers. Part of it is the pre-GST pent-up demand while retailers suggest genuine growth has also considerably picked up.   
Highlighting part has been the premiumisation trend. Robust demand is being witnessed for large screen TV, smartphones above ₹20,000 and inclination towards 5star AC. Alongside GST cut, this growth has been supported by competitive pricing and flexible EMI options.
Among our coverage universe, we remain positive on consumer electronics manufacturers including Dixon Technologies (TP Rs. 20,000) to play on mobile phones, TV, refrigerators and washing machines. Amber enterprises (TP Rs 9,500) for air conditioners as well as Crompton greaves (TP Rs 405) for BLDC fans, water heater and kitchen appliances.

Jewellery
Jewellery companies surprised positive with strong double digit revenue growth despite high base of Q2FY25 (due to custom duty cut on gold) and higher gold prices (grew by ~50%).
Titan’s jewellery business grew by 18% in Q2FY26 driven by early onset of festive seasons mitigating impact of high gold prices. We expect the momentum to continue to in Q3FY26 with continuation of festive season followed by Wedding season.
Gold prices stabilising from the current levels might push sales volumes in the near term. In the current situation mix will be largely titled towards studded jewellery.

Apparels
Trent’s business update showcased moderated revenue growth in Q3 with revenue growth coming at 17% vs. 20% growth in Q1FY26.
High base of Q2FY25 (revenue growth of 40%) and lower Like-for-like growth resulted in below than expected revenue growth in Q2.
We expect Q3 performance to be better in the backdrop of festive season and incremental benefits from GST rate cut.  Trent to deliver mid-single digit LFL growth and along with store addition likely to deliver high teen to low twenties revenue growth in the near to medium term.  

Consumer staples
Consumer demand remained similar to Q1FY26 with rural demand staying ahead of urban demand. Transitionary impact of implementation of GST 2.0 with reduced rate will have impact on the sales growth in Q3.
Volume growth for consumer good companies is expected to be flat to low single digit in Q2. Higher input prices, early passing of GST rate cut benefits and lower operating leverage  will result in lower EBIDTA margins on the yoy basis.
Amongst business update Marico’s performance was standout with high single digit volume growth followed by Dabur India with mid single digit volume growth while GCPL and HUL registered muted performance with flat sales volume.

Liquor companies
Liquor companies are expected to post strong performance on back premiumisation strategy. We expect Radico Khaitan and Allied Blenders & Distillers (ABDL) to post double digit volume growth driven by strong growth in the prestige and above categories.
EBIDTA margins of liquor companies are expected to be higher on yoy basis due to improved mix, stable input prices and accruing benefits of vertical integration initiatives.
Also the Telangana government could clear dues of Rs 3,151 crore for the industry as the tender process for the renewal of retail licence is expected this month and is expected to generate a revenue of over Rs 3,000 crore. Out of the total due Rs2,300crore dues were one year old.
Of the total dues which are more than one year old, Allied Blenders & Distillers receivable stands at Rs400crore, while others like United Breweries (Rs.658cr), Radico Khaitan (Rs.90cr), Tilaknagar Industries (Rs.80cr)

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere