Downgrades

Considering the near-term challenges, we maintain our HOLD rating on the stock and revise our TP to Rs 320/share. The TP implies an upside potential of 3% from the CMP.

JYL’s Q2FY26 performance was impacted by GST-led disruption and pricing/grammage adjustments (value/volume growth of 0.4%/2.8% YoY).

Jyothy Laboratories (JYL) posted flat YoY sales growth in 2QFY26, with volumes rising 3% (est. 4%; 1QFY26 4%). The difference between value and volume growth was primarily due to MRP reductions, higher grammage, and promotional price-offs in select categories.

GCPL is set for a stronger H2FY26 with recovery in Personal Wash post-GST cut and continued momentum in Household Insecticides and Hair Colour.

Emami’s consolidated revenue declined 10% in 2QFY26 (inline), impacted by GST 2.0-led temporary trade disruptions in Sep’25 and extended monsoon affecting the summer portfolio.

P&G Hygiene and Healthcare’s (PGHH) 2QFY26 revenue growth was broadly in line with our expectations, but profitability was a miss. Similar margin anomalies have been observed in past quarters.

A sequential recovery was visible in AWL’s performance in Q2FY26, with Foods profitability sustaining its strong momentum while edible oils’ growth remained largely price-led amid subdued consumption trends.

Colgate's revenue fell during the quarter due to temporary distribution disruptions following the revision in GST rates on oral care portfolio. However, its business fundamentals remained strong with continued brand investments and steady demand in premium segments. The company's strategic focus on innovation, product diversification and rural penetration is expected to aid recovery in the second half of FY26. Ongoing cost optimization under the funding the growth' program, coupled with innovation-led launches in oral and personal care should...

Godrej Consumer’s (GCPL) consolidated revenue rose 4% YoY to INR38.3b (est. INR39.3b), while volume growth stood at 3%. EBITDA declined 4% YoY (est. -5%) due to soft margins for the Indian and Indonesian operations.

Dabur India reported another quarter of too many moving parts, with the outlook likely to get better in the near term. The fact that it gained market share in 95% of its portfolio indicates market growth (also) is to be blamed for the unexciting Q2FY26 revenue print.

With an upside potential of 18% from the CMP, we maintain our BUY rating on the stock

About the stock: Hindustan Unilever (HUL) is India's largest FMCG company with presence of more than 90 years. The company has portfolio of 50+ brands spanning to various categories such as detergents, personal wash and skin care & colour cosmetics. 80% of revenues come from products having leadership positioning in...

Management expects a gradual demand recovery in H2FY26E, supported by improving macro indicators and internal execution initiatives.

With an upside of 12% from the CMP, we maintain our BUY rating on the stock

Colgate’s (CLGT) 2QFY26 performance remained weak as its revenue fell 6% YoY to INR15.2b (in line) on a high base of 10% growth and due to the impact of GST-led transition (trade disruptions).

Emami's performance in 1Q FY26 was impacted by external factors like
unseasonal weather which particularly affected its summer-focused portfolio.
Despite these challenges, the company's core domestic business, excluding
talc, demonstrated resilience with a 6% y-o-y revenue growth.

With 8% y/y revenue growth (vs the Street’s 11%) and Rs582m EBITDA (Rs639m), Mrs Bector Foods’ Q1 was below estimates on muted demand amid high input costs, though growth improved q/q.

JYL’s Q1FY26 performance was subdued with revenue/ volume growth of 1.4%/ 3.6% YoY impacted by heightened competitive intensity across segments.

Considering the near-term challenges, we have downgraded the stock from BUY to HOLD and revised our TP to Rs 355/share, implying an upside potential of 7% from the CMP.

Emami’s Q1FY26 performance beat estimates on all fronts, despite a weak summer which hit revenue growth of summer-centric portfolio.