With Q1 earnings season knocking on the door, Nomura, in its latest note, said that it expects overall consumer staples sales to grow 10.4% year-on-year (YoY) above its eight-quarter average of 7.8% YoY. “We believe volume growth will largely be stable in Q1 FY27 despite the low-to-mid single digit price hikes initiated by companies due to the West Asia war leading to stable demand environment for the third quarter in a row,” the brokerage said, adding that low priced input cost inventory along with the partial effect of price hikes will cushion the impact on gross margins due to the increase seen in raw materials after the war.
Nomura has identified consumer companies it expects to deliver the strongest earnings growth in the April–June quarter of FY27.
