India's consumer sector ready to rebound, earnings to grow by 13 pc in FY26: UBS Report
The report suggested that the sector, which has underperformed in recent years, is now positioned for a recovery as multiple factors align in its favour.
New Delhi [India], April 22 (ANI): India's consumer sector is showing signs of a strong rebound, supported by several positive developments, according to a recent report by UBS.
It said, 'The consumer sector looks ready to rebound, with several factors aligning favourably, Earnings look set to recover in FY26'.
It expects earnings in the consumer sector to grow by around 13 per cent in the financial year 2025-26 (FY26), following a weak performance in FY25, where median earnings growth is estimated to be just 1 per cent.
This projected recovery is largely driven by improving earnings, income support measures, and more attractive stock valuations.
One of the key growth drivers identified in the report is the potential income stimulus over the next few years. This includes the possibility of lower taxes and the implementation of the Eighth Pay Commission, which is expected to boost the purchasing power of consumers. These measures could lead to a revival in demand across many consumer categories and support a longer phase of earnings growth.
The report said, 'Potential income stimulus – lower taxes and the upcoming Eighth Pay Commission over the next three years – could spur a demand revival in many categories and an extended earnings growth phase'.
Additionally, the report added that the sector's valuations have corrected sharply–by as much as 35 per cent since October 2024.
This makes consumer stocks more attractive to investors, especially in a market that may continue to show low risk appetite. At the same time, if risk appetite returns, the sector stands to benefit from that as well.
The report also highlighted how unusual the consumer sector's recent underperformance has been. Typically, this sector performs well during bull markets, as well as during bear markets when investors look for safer, defensive options.
However, since the market peak in October 2024, the sector has continued to lag, even as broader markets have sought defensive plays. UBS believes this rare trend now creates a favourable setup for the sector's performance going forward.
The main reason for the sector's weak performance has been its inconsistent earnings growth. But the report noted that the input cost cycle and base effects are expected to turn positive in FY26, providing further support for earnings recovery.
The report expects a 13 per cent growth in earnings for FY26 and projects an average annual growth rate (CAGR) of 12.8 per cent between FY25 and FY27. (ANI)
This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India Gazette
4 hours ago
- India Gazette
Union Min Shivraj Singh Chouhan interacts with farmers at 'Kisan Chaupal'
New Delhi [India], June 11 (ANI): Union Minister of Agriculture and Farmers Welfare Shivraj Singh Chouhan interacted with farmers during a 'Kisan Chaupal' event held in Tigipur village, Delhi, on Wednesday and emphasized his deep commitment to farmers, declaring, 'Serving farmers is like the service of God to me.' The program was organised as part of the nationwide 'Developed Agriculture Sankalp Abhiyan', which concludes tomorrow, June 12. Speaking at the event, the Minister said, 'Serving farmers is like the service of God to me... This is why I am going among farmers countrywide, and interacting with them...' The Minister highlighted that while the 'Developed Agriculture Resolution Campaign' is drawing to a close, it marks 'a new beginning' in India's agricultural policy direction. He introduced the slogan 'One Country, One Farming, One Team,' explaining that this mantra represents a unified and collaborative approach to improving agricultural productivity and profitability. 'Now we have given the mantra 'One country, one farming and one team', it will work together with the farmers so that we can increase production and increase profits,' he said. Chouhan also addressed issues faced in the agricultural sector and said, 'We will not spare those who cheat farmers in the name of fake seeds, fake fertilisers and fake pesticides. We are bringing a new, stringent law on this.' Earlier on Monday Chouhan marked a significant milestone - 11 years of the Modi government - by highlighting the administration's achievements in the agricultural sector. Speaking in Rangareddy, Telangana, Chouhan emphasised the impact of Prime Minister Narendra Modi's vision and policies on agriculture. 'Today is a historic day,' the Union minister said, adding, 'Our government has completed one year of its third term. This year was full of accomplishments.' Chouhan pointed out that the agricultural growth rate stood at 5.4% in Q4, reflecting the government's focus on the sector. He credited PM Modi's leadership for the increase in foodgrain production, stating that grain storages are full and agricultural production has risen by 40% over the last decade. 'From the point of view of agriculture, it is a result of PM Narendra Modi's vision, policies, and programs. In Q4, the agriculture growth rate was 5.4 per cent... I want to congratulate PM Narendra Modi, our grain storages are full. We have set new records in the production of foodgrains. In the last 10 years, we have increased our agricultural production by 40 per cent...,' the minister remarked. Chouhan also highlighted the government's efforts to promote millets, which are considered superfoods. He mentioned the foundation stone-laying ceremony of the Shri Ann Global Centre of Excellence, aimed at furthering millet production and consumption. (ANI)
India Gazette
4 hours ago
- India Gazette
Jio BlackRock Asset Management gains regulatory approval to launch advisory business
New Delhi [India], June 11 (ANI): Jio BlackRock Asset Management Private Limited (JioBlackRock Asset Management), a 50:50 joint venture between Jio Financial Services Limited and BlackRock, on Wednesday has received regulatory approval from the Securities and Exchange Board of India (SEBI) and BSE Limited to begin operations as an Investment Adviser in India. 'As Indian investors increasingly seek personalised, insight-driven financial solutions, this joint venture is poised to democratize access to world-class advisory services. We are confident that JioBlackRock will redefine the future of wealth creation in India by empowering investors with global expertise and local relevance,' said Hitesh Sethia, Managing Director and CEO, Jio Financial Services Limited. This latest announcement follows the regulatory approval from SEBI for Jio BlackRock Asset Management Private Limited to commence operations as an investment manager for its mutual fund business in India on May 27, 2025. 'With this license, JioBlackRock Investment Advisers will now focus on developing a digital-first product designed to meet the evolving needs of today's investors. Further details about the company's innovative and customer-centric offering will be announced closer to launch,' the company said. 'JioBlackRock Investment Advisers will benefit from the power of BlackRock's global investment expertise and market-leading technology, combined with the local market knowledge and digital innovation and reach of our partner Jio Financial Services,' said Rob Goldstein, Chief Operating Officer, BlackRock. Adding, 'the strength of this unique combination will enable us to provide world-class, personalised investment advice, as we work to help millions of people in India to achieve better financial futures, including long-term goals like retirement.' Furthermore, the company has also appointed Marc Pilgrem as its Managing Director (MD) and Chief Executive Officer (CEO) of the new Registered Investment Adviser. Marc Pilgrem previously served as the Head of Specialist Clients and Investment Trusts for Europe, the Middle East and Africa at BlackRock, where he led initiatives to enhance client engagement and expand BlackRock's investment trust offerings across the region. He was also Chief Operating Officer and Head of Business Strategy for iShares EMEA, overseeing strategic planning and operational execution for BlackRock's exchange-traded fund business. (ANI)
India Gazette
4 hours ago
- India Gazette
EAM Jaishankar interacts with EU top brass; discusses FTA agreement, IMEC
Brussels [Belgium], June 11 (ANI): External Affairs Minister Dr S Jaishankar met the European Commissioner for Trade and Economic Security, Maros Sefcovic and European Commissioner for International Partnerships, Jozef Sikela on Wednesday. The leaders held discussions on imperative issues such as the India-EU Free Trade Agreement (FTA), India-Middle East Economic Corridor (IMEC) along with shipping and clean energy. Sharing the details in a series of posts on X, EAM said, 'Delighted to meet @MarosSefcovic, European Commissioner for Trade and Economic Security in Brussels this morning. Recognised the progress in our discussions for a comprehensive, balanced and meaningful FTA agreement between India and EU. Agreed that it would elevate our strategic partnership, that is rapidly acquiring new dimensions and facets.' 'Great meeting @JozefSikela, European Commissioner for International Partnerships. Our conversation focused on driving forward India - EU engagement in connectivity, IMEC, green shipping and clean energy. Today's signing of our trilateral cooperation arrangement will benefit the Global South', he wrote on X. The European leaders too expressed optimism on meetings with EAM Jaishankar. European Commissioner for Trade and Economic Security, Maros Sefcovic wrote on X, 'A valuable meeting with @DrSJaishankar, covering our efforts to elevate the EU-India partnership to the next level - through a commercially meaningful trade agreement. We keep our strategic lenses firmly in place, and I'm looking forward to seeing @PiyushGoyal soon.' European Commissioner for International Partnerships, Jozef Sikela in a series of posts on X mentioned, 'Following our recent mission to India, we keep pushing for stronger EU-India partnership. Today I had a meeting with India's Minister of External Affairs, @DrSJaishankar. We discussed: New EU-India Strategic Agenda; The progress of India-Middle East-Europe Corridor project. Our joint priorities under the Global Gateway, which include clean energy, sustainable urbanization and enhanced connectivity' 'To fully unlock the potential of the EU-India partnership, today we signed a Cooperation Agreement on Trilateral Cooperation with Minister of External Affairs @DrSJaishankar. This new initiative will support pilot projects in third countries, focused on driving sustainable development with a strong emphasis on climate action and digital inclusion,' Jozef Sikela added. Earlier in the day, Jaishankar met the President of the European Parliament, Roberta Metsola, on Wednesday. The two leaders discussed cooperation between India and Europe on several fronts, including trade, technology and security. (ANI)
