Inflation Fears Growing? Here Are 3 Stocks That Thrive

#2 Godrej Consumer Products

Next on our list is the stock of Godrej Consumer Products.

In the FMCG sector, consumers often continue buying familiar brands even after moderate price increases because these products are daily essentials and form a small part of monthly expenses. This allows companies like Godrej Consumer Products to protect margins better than smaller or unbranded competitors during inflation.

Products such as Goodknight, Cinthol, Godrej No.1, and HIT, enjoy high consumer recall and loyalty, which gives the company pricing power.

Financial Highlights of Godrej Consumer Products

In Q4 FY26, at a consolidated level, revenues grew 11% in rupee terms on the back of 6% underlying volume growth. EBITDA grew 10%, with operating margin at 21.7%, and net profit after tax grew 10% to Rs 4,518 m.

The management in a recent conference call post the Q4 results stated that the company has entered FY27 from a position of strength.

Its India business is well placed to deliver continued calibrated growth as normative EBITDA margins, supported by improving demand trends improve. A strengthening innovation pipeline and consistent in-market execution will also help.

In Indonesia, the company expects a meaningful step-up in performance as pricing pressure abates and its Africa, US and Middle East business continues to deliver on its stated objective of double-digit revenue and profit growth over the medium term.

#3 Tata Consumer Products

Tata Consumer Products is relatively better placed during inflation because of its strong brands, especially its leadership in tea.

Consumers tend to continue buying trusted daily-use products like Tata Tea, Tata Tea Premium, Tata Tea Agni, and Tetley even after price hikes. This gives the company pricing power.

Tea is a habit-driven category. Consumers are usually reluctant to switch brands for small price differences because taste and consistency matter. This allows Tata Consumer to pass on higher tea, packaging, freight, and fuel costs through calibrated price hikes without severely hurting demand.

Financial Highlights of Tata Consumer Products

The company had a strong fourth quarter FY26 where consolidated revenue grew 18%. Growth was largely volume led and broad based with India growing at 13%.

International and non-branded delivering 11% and 41%, respectively, in constant currency. Growth was also complemented by margin expansion.

Stand-alone EBITDA grew at 51%, while consolidated EBITDA saw a 27% growth. Margins on EBITDA level expanded by 100 basis points over last year.

Net profits were Rs 4,912 m vs Rs 4,071 m YoY.

One of the highlights of the Q4 results were the performance of Sampann. The brand grew 69% in Q4 and 46% full year.

According to the management, the company has seen growth across pulses, poha, vermicelli, and almost all of the products under the brand.

Tata Consumer is evolving into a diversified FMCG growth company rather than just a tea business.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...