New Delhi, Nov 24 India’s consumer sector showed a broad but varied recovery in Q2 FY26, led by jewellery and liquor categories, while paints, innerwear and staples showed early signs of improvement as markets stabilised post-GST transition, a recent report said.
Strong festive demand and premiumisation lifted momentum in jewellery and liquor respectively, the report from brokerage Motilal Oswal Financial Services Limited said.
The report which analysed 60 companies, with combined revenue of Rs 1.2 trillion in Q2 FY26, reported revenue growth of 8 per cent year‑on‑year and EBITDA growth of 4 per cent YoY.
In the first half of FY26, revenue rose 10 per cent and EBITDA climbed 3 per cent, the report said.
Jewellery and liquor were clear winners the brokerage said, adding that jewellery posted 26 per cent revenue growth and 25 per cent EBITDA growth. Liquor benefited from premiumisation, delivering 11 per cent revenue growth and 16 per cent EBITDA growth.
In the liquor segment spirits grew strongly, while beer lagged due to weather disruptions.
Paint companies saw demand revival from September, supported by festive repainting and improved trade sentiment, with category revenue up 7 per cent and EBITDA up 17 per cent.
Staples reported muted performance after GST transition and extended monsoon, with revenue up 1 per cent and EBITDA showing flat activity. The rural volumes grew 5.7 per cent compared to 1.9 per cent growth in urban areas.
Quick‑service restaurants saw a soft quarter posting 10 per cent revenue growth and 4 per cent EBITDA growth.
Innerwear segment posted 4 per cent revenue growth but EBITDA remained flat as higher marketing spends weighed on margins.
Motilal Oswal forecasted staples to see steady recovery as GST volatility normalises from November. It expects paints to strengthen in later quarters, sustained growth in spirits due to premiumisation, and strong momentum in jewellery during the wedding season.
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