The FMCG industry is an integral sector of the Indian economy. However, the FMCG industry has recently been under intense pressure due to cooling demands, resulting in poor financial performance of the best FMCG stocks.
The Budget 2025 has reignited the spirit of the FMCG stocks in NSE and BSE. Apart from sectoral allocations, the spirit of the Budget in general is to target this falling demand by increasing the disposable income. For instance, the government of India made income up to ₹12 lakh tax-free.
Therefore, this blog gives a detailed look at the top five FMCG stocks. The aim is to give investors and traders key insights that might help them take advantage of Budget 2025 provisions and post-budget market trends.
The best FMCG stocks
The top 5 FMCG companies as of 5th February 2025 depending on capitalization and ranked based on one-year return are shown in the table below.
| Particulars | Market Capitalisation (₹ Cr) | 1-year return (%) | PE ratio | Price to sales |
| Varun Beverages Ltd. | 198290.96 | 12.58 | 78.03 | 10.44 |
| Hindustan Unilever Ltd. | 573405.92 | 0.77 | 55.39 | 9.15 |
| Britannia Industries Ltd. | 121299.76 | -1.88 | 56.44 | 7.03 |
| Nestle India Ltd. | 221601.73 | -6.63 | 70.64 | 11.10 |
Before getting into the peer analysis of these companies where the blog makes a comparative study of them, it is necessary to understand their individual background and financial performance.
Also read: List of FMCG Stocks in India 2025.
Varun Beverages Ltd.
Varun Beverages Limited is a significant player in the beverage industry and is among the largest PepsiCo franchisees beyond the US. Under the PepsiCo trademarks, the company manufactures, distributes, and promotes a range of carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs).
The table below shows the key consolidated fiscal metrics of Varun Beverages Ltd. These metrics will give individuals a strong understanding of financial health.
| Particulars | September 2023 (₹ Cr.) | September 2024 (₹ Cr.) | Year-on-year growth (%) |
| Sales | 3,871 | 4,805 | 24.13 |
| Operating profit | 882 | 1,151 | 30.50 |
| Profit before tax | 667 | 800 | 19.94 |
| Net profit | 514 | 629 | 22.37 |
Key Insights
The revenue, profit and overall financial performance experienced significant and sustained fiscal growth. This increase is the result of several parameters. Some of them are discussed below.
- Varun Beverages was able to increase its product line and reach fresh markets with the acquisition of BevCo. It led to a significant rise in sales.
- To reach more customers, the firm has concentrated on expanding its distribution network, especially in rural regions.
- The 24.13% rise in revenue is aided by higher demand for their beverage goods, particularly low-sugar and no-sugar varieties.
- The increased operational efficiency has led to a rise in operating margins by 30.50%.
Hindustan Unilever Ltd.
One Indian firm that deals with fast-moving consumer goods (FMCG) is Hindustan Unilever Limited (HUL). The company is a division of Unilever. HUL brands like Lipton, Horlicks, Brooke Bond and others are well-known. In 1956, three businesses merged to establish the organization.
The consolidated financial parameters of the HUL are displayed below in a tabular form.
| Particulars | December 2023 (₹ Cr.) | December 2024 (₹ Cr.) | Year-on-year growth (%) |
| Sales | 15,567 | 15,818 | 1.61 |
| Operating profit | 3,665 | 3,695 | 0.82 |
| Profit before tax | 3,445 | 3,982 | 15.59 |
| Net profit | 2,508 | 2,989 | 19.17 |
Key Insights
The fiscal parameters of HUL show a growth due to the following reasons.
- HUL has associated the 19% growth of profit primarily with the water purifier brand Pureit.
- The growth in performance is led by the volume of products sold in categories like fabric wash and household care.
- The contribution of beauty and wellness was restricted to 1%. The company has notified us that a major reason is the delayed winter.
- The growth was not significant or exponential due to the stress faced by the FMCG sector caused by reduced disposable income.
Also read: A strong FMCG growth projection for 2025 results 17% surge in stocks.
Britannia Industries Ltd.
Britannia is a well-known brand in India and one of the top producers of food items. It was founded in Kolkata in 1892. They operate in more than 80 countries worldwide, with their main activities being in the bread, dairy, and related food areas.
Recently in 2021, the company relaunched its famous Good Day Biscuits. The company’s prominent thick shake brand Winkin’ Cow crossed ₹100 Crores in revenue.
The consolidated financial parameters of the company are represented in a tabular form below.
| Particulars | September 2023 (₹ Cr.) | September 2024 (₹ Cr.) | Year-on-year growth (%) |
| Sales | 4,433 | 4,668 | 5.30 |
| Operating profit | 871 | 780 | -10.44 |
| Profit before tax | 799 | 715 | -10.51 |
| Net profit | 586 | 532 | -9.22 |
Key Insights
The two primary reasons for the 9.22% reduction in net profit are discussed below.
- The general stress on the consumer goods industry is due to a fall in demand. However, after the Budget 2025 announcements the demand is expected to rise driven by an increasing discretionary income.
- Since most products of Britannia are bakery items like biscuits and cakes, the rise in input prices of items like wheat and cocoa had increased the cost of production. The Budget 2025 impacts are expected to ease this inflationary pressure.
Nestle India Ltd.
The business inaugurated its first plant in Moga, Punjab, in 1961. With a market value of ₹221601.73 crore, it is the second-largest FMCG in India. Among Nestlé’s well-known products are Nescafé, Maggi, Milkybar, and Kit Kat.
Below is a tabular representation of the company’s financial indicators.
| Particulars | December 2023 (₹ Cr.) | December 2024 (₹ Cr.) | Year-on-year growth (%) |
| Sales | 4,600 | 4,780 | 3.91 |
| Operating profit | 1,095 | 1,085 | -0.91 |
| Profit before tax | 886 | 922 | 4.06 |
| Net profit | 656 | 696 | 6.10 |
Key Insights
Macroeconomic factors like inflation and rising input prices affected the quarterly growth. It resulted in low urban demand. Moreover, the powdered and liquid beverage businesses performed better than other products of the brand.
Peer Analysis of the best FMCG stocks
| FMCG stocks | Market Cap (₹ Cr.) | P/E Ratio Ind avg 40-50) | Good/ Bad | Earnings Growth (%)Ind avg 8-10 | Good/Bad | Dividend yield (%) Ind avg 1.5-1.8 | Good/Bad |
| Varun Beverages Ltd. | 198290.96 | 78.03 | 👍 | 24.03 | 👍 | 0.17 | 👎 |
| Hindustan Unilever Ltd. | 573405.92 | 55.39 | 👍 | 18.91 | 👍 | 1.73 | 👍 |
| Britannia Industries Ltd. | 121299.76 | 56.44 | 👍 | -9.55 | 👎 | 1.48 | 👎 |
| Nestle India Ltd. | 221601.73 | 70.64 | 👍 | 6.18 | 👎 | 0.75 | 👎 |
Conclusion
The performance of the FMCG stocks will be impacted by the Union Budget 2025. However, since the most pertinent hurdles faced by the sector were macroeconomic parameters like inflation and rising input costs, it will take some time for the Budget provisions to penetrate the market enough to yield tangible results. It is necessary for traders and investors to not respond impulsively to market reactions. Financial prudence and thorough fiscal analysis can help sustain returns through the best FMCG stock investments.
Also read: FMCG Giants Eye Mahakumbh 2025 for Rural Market Growth.
