FMCG Stocks: ITC, Britannia, Emami, Nestlé Shares Rise As GST 2.0 Cuts Prices On Snacks And Essentials

FMCG Stocks To Watch: FMCG stocks were in focus as the GST Council’s recent reforms are set to reduce tax rates on key categories such as snacks, savories, juices, instant noodles, and personal care products. 

The move is expected to improve consumer demand, ease pricing pressures, and support earnings growth for leading companies.

On Thursday, several FMCG shares gained. ITC rose 1.53 percent to Rs 417.80, Britannia climbed 3.74 percent, Emami gained 3.70 percent, Colgate-Palmolive rose 3.66 percent, and Dabur went up by 2 percent. 

Nestlé India gained 1.86 percent, Marico rose 1.05 percent, Hindustan Unilever added 0.84 percent, and United Breweries advanced 0.57 percent.

Brokerage firms believe that the reduction in GST will directly benefit players with large distribution networks, as lower prices are likely to be passed on to consumers. 

Emkay report stated, “As the duty on savories comes down by 7%, it will directly be passed on to consumers. This quantum of price reduction will ease demand pressure and help demand recovery. Players with wider distribution are likely to see a benefit.”

Also Read: Kitchen Items That Will Go Cheaper After New GST Rates

Company-wise outlook

Bikaji Foods: The company is expected to benefit from lower GST on savories. Emkay said, “We see annual improvement of 2% in volume growth. This will also help in operating leverage, leading to improvement in margin. We see possible earnings upgrade of ~2% and ~3% for FY26E and FY27E, respectively.”

Its target price has been revised upward to Rs 925 from Rs 900. The stock is already up 10% in the last two weeks.

Gopal Snacks: The GST cut will help the company recover sales faster. Emkay noted that management expects a strong ramp-up with revenue of about Rs 5 billion each in Q3 and Q4. “We see 1% improvement in revenue growth, and earnings changes likely at 2-3%. Jun-26E TP increases by 7% to Rs 535, on 42x P/E.”

Emami Ltd: Around 75% of Emami’s India portfolio will benefit if GST drops from 12% to 5%. Products like Navratna Oil, Boro Plus, Dermicool, and Kesh King fall under this slab.

“We see topline estimate upgrade of 1-2% over FY26-28E which, with margin benefits, will lead to 1-3% upgrade in earnings,” the brokerage said. The target price has been raised to Rs 825.

Nestlé India: About 30% of its portfolio, including instant noodles, pasta, and ketchup, will benefit. While near-term benefits are limited, the company is expected to gain from FY27 onwards. The stock has surged 8% in the past fortnight, but the recommendation remains REDUCE due to limited upside.

Dabur: About 25% of Dabur’s portfolio will benefit, mainly juices, Hajmola, Pudin Hara, Lal Tel, Shilajit, and Ghee. Analysts expect limited short-term benefit, with a target price of Rs 500 maintained and rating at REDUCE.

FMCG Goods GST Slab Slashed 

The 56th GST Council meeting held on 3rd September 2025 brought good news for households. The council decided to cut taxes on several food products. These changes will directly reduce the cost of cooking and eating at home. Families will now spend less on milk, paneer, butter, cheese, nuts, and other common items.

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