New Delhi, Oct. 7 -- Indian FMCG companies are set for a mixed Q2FY27 earnings season, with a softer year-ago base and selective price hikes expected to support topline growth. However, persistent raw-material inflation is likely to keep margins under pressure, making earnings delivery crucial for stock valuations.

Domestic brokerage house HDFC Securities, in its Q2FY27 earnings preview for the FMCG sector, maintained an underweight stance, saying the sector continues to face weak earnings visibility and a waning competitive moat. The brokerage expects revenue growth to improve in the September quarter but remains selective in its stock preferences.

"FMCG sector valuations continue to de-rate amid weak earnings visibility and a waning m...