The report notes that these reforms may directly alter demand equations for autos, staples, durables, cement, financials, and consumer services
Emphasising that the second-generation goods and services tax (GST) reforms notified by the government have the potential to reset consumption dynamics and improve sector profitability, a report has highlighted that several industries are set to see a demand boost, margin relief, or both.
Motilal Oswal Financial Services or MOFSL noted in a report that the GST 2.0 reforms are not just a macro boost; they directly alter demand equations for autos, staples, durables, cement, financials, and consumer services. Together, these sectors could lead the earnings recovery cycle in the second half of the current financial year (H2FY26).
“Hindustan Unilever or HUL and Britannia should benefit as several raw materials shift to lower slabs, reducing input costs and supporting consumption of core staples. GST on air conditioners and select durables may move down from 28 per cent to 18 per cent, boosting demand,” the report added.
Voltas, Havells (via Lloyd), and Amber Enterprises, a key EMS supplier, could see stronger volumes. GST for mid-market hotel inventory may reduce from 12 per cent to 5 per cent, aiding players like Lemon Tree and Indian Hotels (via Ginger brand), as per the report.
Rising demand for durables, staples, and discretionary goods will aid logistics players such as Delhivery. Quick commerce platforms like Swiggy and Eternal stand to gain from higher household consumption. The report explained that footwear and other mass products shifting to lower slabs should shrink the tax arbitrage of the unorganised sector. Organised players such as Relaxo, Bata, and Campus are positioned to capture share gains.
MOFSL noted that the GST cut from 28 per cent to 18 per cent reduces cement prices by about 7 to 8 per cent. Ultratech and JK Cement are well-placed to gain from improved sentiment and demand recovery in infra and housing. Passenger vehicles and commercial vehicles, currently in the 28 per cent slab, will benefit from a move to 18 per cent. Maruti, Tata Motors, and Ashok Leyland are positioned to gain from lower effective prices and higher volumes.
