Packaged food demand set to lift FMCG growth in FY26 second half, says Nuvama’s Abneesh Roy

Abneesh Roy, Executive Director at Nuvama Institutional Equities, expects packaged food-focussed fast-moving consumer goods (FMCG) companies to outshine other segments in the second half of the financial year ending March 2026. Rising consumption and larger pack sizes are likely to benefit companies such as Nestlé India, Britannia Industries, Tata Consumer Products, and Bikaji Foods .

“No one is going to brush more just because it’s lower price or higher grammage. So, it will benefit the food companies. Because, if you see biscuits, snacks, or even Maggi, for example, the consumer buys a pack. So in such cases, the grammage addition will benefit volumes straight away,” he told CNBC-TV18.

Roy favours diversified FMCG players, as companies with broader portfolios are better placed to handle market challenges. FMCG sentiment is likely to improve as demand normalises and consumers return to steady spending, particularly in packaged foods and household products.

In contrast, companies in categories like toothpaste could bear the brunt of an inverted goods and services tax (GST) structure, where most inputs are taxed at 18% while the end product attracts 5%, limiting refund eligibility. "This will lead to margin pressure for Colgate,” Roy said.

Also Read: Festive season fuels brand innovation and emotional connection, say FMCG leaders

A product price hike may be unavoidable for Colgate to offset rising costs. Competitive intensity also remains high in the oral care segment, with rivals like Dabur India, HUL, and Patanjali, adopting similar promotional strategies.

For the entire interview, watch the accompanying video

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