As FY26's second-quarter results begin rolling in, three themes stand out across the sectors we track most closely: input-cost normalisation in FMCG, capex-led order-book visibility in industrials, and margin resilience in IT services amid a still-cautious discretionary spend environment.
1. FMCG: gross margin recovery vs. volume growth trade-off
Palm oil and crude-linked input costs have eased meaningfully from their FY25 peaks, giving most FMCG majors room to either protect margins or reinvest in volume-led growth via calibrated price cuts. Watch management commentary on rural demand recovery as the key swing factor for H2 guidance.
2. Industrials & capital goods: order book conversion
Order inflows have stayed healthy through FY26, but the market's focus is shifting to execution — specifically whether working-capital cycles and raw-material availability allow order books to convert into revenue on schedule.
3. IT services: deal ramp-up vs. discretionary spend caution
Large-deal TCV growth remains a positive signal, but discretionary/consulting-led spend is recovering more slowly than expected. Margin commentary on utilisation and subcontracting costs will matter more than headline revenue growth this quarter.