FMCG sector set for strong Q1, lower crude oil prices to boost margins, says Anand Rathi; Marico, HUL among top picks

Anand Rathi Research expects the FMCG sector to deliver strong Q1 FY27 results, with double-digit revenue growth sustained on the back of premiumisation, GST rate cuts and expanding distribution channels. Lower crude oil and derivative prices are seen supporting margin expansion from Q2FY27 onwards, and the brokerage projects roughly 10% revenue CAGR and 14% earnings CAGR over FY26-FY28. Top large-cap picks are Hindustan Unilever (target around Rs 2,700), Marico (around Rs 865) and Godrej Consumer Products (around Rs 1,400), while Mrs. Bector Foods (around Rs 250) is the preferred mid-cap and Zydus Wellness a small-cap idea; paints and alcoholic beverages segments also delivered healthy double-digit growth.