India's Britannia leads rise in consumer stocks on hopes of GST cut on biscuits

Britannia Industries

26/08/2025 09:43

** Shares of biscuit maker Britannia Industries BRIT.NS rise about 4%, leading the gains in consumer index .NIFTYFMCG which is up 1.1%

** Rise in BRIT after CNBC-TV18 reports citing government sources that the goods and services (GST) tax rate on biscuits may be reduced to 5% from 18%

** Lower GST is positive for BRIT as it reduces tax burden, enhances volume growth and profitability

** Toothpaste is unlikely to see any change in GST rates from the current 18%; COLG trades flat

** Other constituents of consumer index such as Hindustan Unilever HLL.NS, Nestle NEST.NS, ITC ITC.NS, up between 1%-3%

** "GST cuts, an additional step by the government to revive consumption along with moderating inflation and good monsoon rains are likely to revive earnings in the sector, says BofA Securities

** FMCG index .NIFTYFMCG is down 0.7% in 2025 so far, lagging the benchmark Nifty 50's .NSEI 4.9% rise, exchange data shows

 (Reporting by Bharath Rajeswaran in Bengaluru)

 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))