3 FMCG Stocks With Net Profit Margins of Up to 20.7% in Q2 FY27
In FMCG, volumes are easy to chase, but profit margins are harder to earn. Strong brands and loyal shoppers let a few companies hold net margins above 15%, well beyond what most of the sector manages. ITC, Colgate-Palmolive (India) and Hindustan Unilever sit on that list, so let's look at their shares and their latest earnings.
1. ITC
ITC is one of India's largest FMCG players, with a big presence in cigarettes, packaged foods, hotels and paperboards. Its cigarette business is the profit engine, while its non-cigarette FMCG arm keeps growing faster.
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Shares of ITC Ltd. were closed at Rs. 284.05, down 0.33 percent from the previous close of Rs. 285.00. The stock opened at Rs. 287.40 and reached an intraday high of Rs. 290.25 and low of Rs. 283.65. The company currently has a market capitalization of Rs. 3,55,844 crores.
In Q2 FY27, ITC posted a consolidated net profit of Rs. 4,229.33 crore on net revenue of Rs. 20,454.00 crore. That works out to a PAT margin of about 20.7 percent this quarter, comfortably above the 15 percent mark. The stock’s P/E is 18.5.
2. Colgate-Palmolive (India)
Colgate-Palmolive (India) is the country's top toothpaste m`aker, with a strong grip on oral care across urban and rural shelves. Premium products and steady everyday demand keep its margins healthy.
Shares of Colgate-Palmolive (India) Ltd. were closed at Rs. 1,730.00, down 0.83 percent from the previous close of Rs. 1,744.50. The stock opened at Rs. 1,744.50 and reached an intraday high of Rs. 1,758.60 and low of Rs. 1,721.40. The company currently has a market capitalization of Rs. 47,162 crores.
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In Q2 FY27, Colgate-Palmolive posted a net profit of Rs. 341.57 crore on net sales of Rs. 1,691.57 crore. That works out to a PAT margin of about 20.2 percent this quarter, well above the 15 percent mark. The stock’s P/E is 33.3.
3. Hindustan Unilever
Hindustan Unilever is India's biggest FMCG company, selling home care, personal care, beauty and foods brands found in almost every household. Its huge reach and everyday-use products make its earnings steady.
Shares of Hindustan Unilever Ltd. were closed at Rs. 1,974.00, down 1.47 percent from the previous close of Rs. 2,022.40. The stock opened at Rs. 2,004.00 and reached an intraday high of Rs. 2,011.10 and low of Rs. 1,969.00. The company currently has a market capitalization of Rs. 4,60,778 crores.
In Q2 FY27, HUL posted a consolidated net profit of Rs. 2,790 crore on revenue from operations of Rs. 18,226 crore. That works out to a PAT margin of about 15.3 percent this quarter, just clearing the 15 percent mark. The stock’s P/E is 41.8.
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Where Profit Margins Meet the Stock Market
All three companies cleared the 15 percent PAT margin bar this quarter, with ITC and Colgate near 20 percent and HUL just above the line. A high margin shows how much of each rupee of sales turns into profit, and it points to strong brands and pricing power. HUL has the thinnest cushion of the three, so any rise in input costs would be felt there first. For ITC, the margin depends on which revenue figure you use, so it is worth reading the fine print.