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Consumer companies - good start to the results season

ICICIdirect Research 24 Apr 2026 DISCLAIMER

Consumer companies had a good start to the results with consumer staples such as Nestle India registering uptick in volume growth and improved margins while discretionary companies such Trent and BlueStone Jewellery & lifestyle registered strong operating performance with double digit earnings growth.

Nestle India – stellar Q4 backed by sturdy volume growth

  • Consolidated revenues grew by 22.6% YoY to Rs6,748cr; domestic business grew by 23% driven by 16-17% volume growth, which was better compared with 12-13% volume growth achieved in Q3FY26.
  • Cost saving measures and strong revenue growth led to 103bps YoY improvement in the EBIDTA margins to 26.5%. EBIDTA grew by 28% YoY to Rs1,772cr and PAT grew by 30% YoY to Rs6,723cr.
  • Revenue growth to remain high in H1FY27 and would moderate in H2FY27 on a high base. Overall we expect mid-teens revenue growth in FY27 driven by 10-11% volume growth. EBIDTA margins to stay flat in FY27 and will improve in FY28 in stable raw material price environment.
  • We retain Nestle India as our preferred pick in the FMCG space and recommend Buy with a price target of Rs1,615.

Trent – Strong Q4 with yet another quarter of margin beat; declare bonus issue of 1:2

  • Revenue growth improved to 20% YoY in Q4FY26 (as against 16-17% growth in Q2-Q3FY26) on the back of aggressive store additions even while like-for-like (LFL) growth remained in low single digit.
  • Margin execution was better than expected. EBITDA margins improved by 242 bps YoY to 18.6%, driven by gross margin improvement and a 15%/21% decrease in employee cost per sq.ft. and rent per sq.ft. respectively.
  • The board has approved an in-principal proposal to raise Rs.2,500 crore through a rights issue to fund its future store expansion and investment in new brands. We expect the company to add 40-50 Westside stores p.a. and 180-190 Zudio stores p.a. in the coming years.
  • New store addition will help revenues to grow by 20% in the near term. Any improvement in the LFL growth will help growth to improve to 25% as guided by management earlier. Trent remains one of the strongest model in the fast fashion space. We maintain Buy with a price target of Rs5075.

 

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