FMCG Sector Set for Strong Q1 as Lower Crude Oil Prices Boost Margins, Says Anand Rathi, With Marico and HUL Among Top Picks

The FMCG sector is positioned for a strong June quarter, according to brokerage Anand Rathi, which expects sustained gross margin expansion across the space as crude oil prices have eased meaningfully from their recent peaks. The brokerage named Marico and Hindustan Unilever among its top picks within the FMCG sector, citing favourable input cost trends and resilient demand even as monsoon and global uncertainty remain key monitorables.

Anand Rathi’s view comes after Brent crude retreated to around 72 to 73 dollars a barrel, well off the highs seen earlier this year during the West Asia conflict, easing pressure on packaging, logistics and several crude derived raw materials that have weighed on FMCG sector margins over the past few quarters.

Click Here – Get Free Investment Predictions

Why Lower Crude Is a Tailwind for the FMCG Sector

Crude oil and its derivatives, including linear alkyl benzene, high density polyethylene and various packaging inputs, form a meaningful part of the cost base for FMCG sector companies, particularly in home and personal care categories. With crude prices having corrected sharply from earlier highs, Anand Rathi expects this easing input cost trend to support gross margins through the June quarter, even as companies continue to prioritise brand building investments that could keep EBITDA margin gains comparatively moderate.

The brokerage’s broader FMCG sector view also points to demand holding up despite global uncertainty, with rural consumption continuing to outperform urban markets and premiumisation trends supporting realisations across several categories.

The table below summarises the key numbers for Anand Rathi’s top FMCG sector picks.

Stock	CMP	52 Week High	52 Week Low
Marico	Rs 836	Rs 848.80	Rs 690.20
Hindustan Unilever	Rs 2,122	Rs 2,705.09	Rs 2,022.50

Why Marico and HUL Are Among the FMCG Sector Top Picks

Marico was trading around Rs 836, close to its 52 week high of Rs 848.80, reflecting the market’s confidence in the stock even before this latest brokerage endorsement. The company has benefited from a sharp correction in copra prices from their peak, a key raw material for its core Parachute and Saffola franchises, alongside strong momentum in its foods and premium personal care portfolios. Use the Univest Screener to track Marico’s margin trajectory ahead of its Q1FY27 results.

Hindustan Unilever was trading around Rs 2,122, well below its 52 week high of Rs 2,705.09, leaving the stock with more re-rating headroom within the FMCG sector if margin expansion plays out as Anand Rathi expects. HUL has taken calibrated price hikes in categories such as tea, salt and detergents to cushion the impact of palm oil inflation, while management has flagged it is closely monitoring commodity and currency movements to protect its price value proposition.

Compare FMCG Sector Stocks on Univest Screener

What Should Investors Watch in the FMCG Sector Now

Investors tracking the FMCG sector should watch the formal Q1FY27 results over the coming weeks for confirmation of the margin trends Anand Rathi has flagged, along with management commentary on rural versus urban demand and the monsoon outlook, since a below normal monsoon remains a key risk to rural consumption. Any reversal in crude oil prices, given the still fluid geopolitical backdrop in West Asia, would also be an important factor to track for the sector’s cost outlook.

Download the Univest iOS App or Univest Android App to track FMCG sector stocks including Marico and HUL ahead of Q1FY27 results.

Conclusion

Anand Rathi’s constructive call on the FMCG sector, anchored on easing crude linked input costs and resilient underlying demand, positions Marico and HUL as key names to watch heading into the June quarter results season. While the margin tailwind from lower crude oil prices offers a supportive backdrop, monsoon trends and global commodity volatility remain swing factors for the sector’s trajectory through the rest of FY27. Stock price movements are subject to market risk, so investors should consult a SEBI registered advisor before making any investment decision.

Frequently Asked Questions

Why does Anand Rathi expect a strong Q1 for the FMCG sector?

Ans. Anand Rathi expects a strong Q1 for the FMCG sector mainly due to lower crude oil prices, which are easing the cost of packaging, logistics and several crude derived raw materials, supporting gross margin expansion.

Which stocks has Anand Rathi named as top picks in the FMCG sector?

Ans. Anand Rathi has named Marico and Hindustan Unilever among its top picks within the FMCG sector, citing favourable input cost trends and resilient underlying demand.

What is the current Marico share price?

Ans. Marico was trading around Rs 836 on the NSE on 30 June 2026, close to its 52 week high of Rs 848.80.

What is the current HUL share price?

Ans. Hindustan Unilever was trading around Rs 2,122 on the NSE on 30 June 2026, well below its 52 week high of Rs 2,705.09.

How does lower crude oil benefit the FMCG sector?

Ans. Lower crude oil prices reduce the cost of packaging, logistics and crude derived raw materials such as LLP and HDPE, which form a meaningful part of the cost base for several FMCG sector categories, particularly home and personal care.

What are the key risks to the FMCG sector outlook?

Ans. A below normal monsoon, which could weigh on rural consumption, and a potential reversal in crude oil prices given the fluid geopolitical situation in West Asia, are among the key risks flagged for the FMCG sector outlook.

Should investors buy Marico and HUL based on this report?

Ans. Brokerage views reflect Anand Rathi’s own assessment and are not guaranteed outcomes. This article does not constitute investment advice, and investors should consult a SEBI registered advisor before making any investment decision.