# Consumer sector outlook for FY27 faces challenges from cigarette tax hikes and crude oil shocks.

*business · news · 2026-04-13 · The Economic Times*

## Key points

- ITC's Q4 cigarette volumes are expected to be flat due to pre-budget inventory front-loading.
- Illegal cigarettes are projected to gain market share after the sharpest tax hike in years.
- Paint companies face 100-200 basis points EBITDA margin compression in Q1 FY27 from crude-linked inflation.
- Avenue Supermart is expanding aggressively with 85 new stores in FY26, including entry into Uttar Pradesh.
- Quick service restaurants face rising LPG, delivery, and packaging costs, limiting their pricing power.

**Companies:** ITC, Nestle, Marico, Tata Consumer, Titan, Avenue Supermart, Jubilant Foods, Asian Paints, Berger, Akzo, Kansai, Pidilite, VMart
**Countries:** India

[Read the full story on The Economic Times](https://economictimes.indiatimes.com/markets/expert-view/itc-paints-qsr-abneesh-roy-on-what-you-should-buy-and-avoid-right-now/articleshow/130230990.cms)

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