New Delhi: Consumer staples growth momentum is likely to moderate in the second half of FY27 as GST-related benefits phase out and high base effects set in, brokerage firm Systematix Instituitional Equities said in a report.
Pan-India channel checks point to a balanced sector outlook with distributor efficiency improving, but volume recovery remaining uneven across categories.
Forward-looking, pricing discipline, SKU innovation at lower price points and supply chain agility will differentiate winners as rural demand stays patchy and illicit trade pressures intensify in taxed categories.On-ground trends show distributors running leaner with inventory holding down to 7-10 days from 12-15 days six months ago.
More frequent deliveries and alignment with retail pull have freed working capital and reduced stock-outs.
Sales targets remain in mid-teens in key regions, indicating companies are still pushing for double-digit growth despite a tougher base.
