Indian staple firms expect higher Q4 FY26 profits due to lower costs, GST cuts, and rising demand.

Indian consumer staple companies are projected to see improved profit margins in Q4 FY26, driven by lower input costs, GST cuts reducing consumer prices, and easing inflation, according to Systematix Research. Volume growth rose to 3.5% year-on-year in Q3 FY26, up from prior quarters, with strong demand in biscuits, noodles, coffee, chocolates, winter products like skincare and dry fruits, and paints due to post-monsoon activity and wedding season demand. While earlier disruptions from GST changes and dealer destocking slowed growth, conditions improved by Q3. The report forecasts continued margin recovery in Q4 as distribution networks expand and cost pressures ease.