Stocks to buy for long-term: Nestle to Britannia — Axis Securities bets high on these FMCG stocks after Q3 results 2026

Stocks to buy: The Q3 results 2026 season finally come to an end. In the FMCG sector, most staple companies reported a recovery in growth, led by gradual strengthening in demand and aided by easing inflation—particularly in food—over the past few months, according to experts.

“Improving consumer confidence indicates a turnaround in overall consumption trends. Going ahead, volume growth is expected to gain traction. With stabilising demand and a supportive macro backdrop and benefits from GST-related changes, management anticipates FY27 to outpace FY26, with growth continuing to remain the key strategic focus,” brokerage firm Axis Direct said in a report.

FMCG Sector - Q3 FY26 review

According to the brokerage firm, most of the FMCG topline growth delivered healthy topline numbers in the December quarter FY26, driven by strong volumes.

It further noted that companies have reported a mixed performance in the gross margins front and a sequential recovery is expected in the coming quarters, as key raw material prices – crude, packing, and palm remained stable.

Companies have indicated that volume recovery is expected to strengthen in the coming quarters, supported by factors such as the recent GST 2.0 reforms, moderating inflation, interest rate cuts, and an above-normal monsoon. These developments are likely to drive a rebound in consumption going forward, the brokerage report said.

Here are the top three FMCG stocks to buy as recommended by Axis Direct -

Nestle India - Target Price: ₹1,500

Nestlé remains well-positioned for long-term growth, underpinned by its dominant domestic franchise, continued innovation, distribution-led market penetration, capacity expansion, and increasing out-of-home consumption. While volatile commodity prices, especially in coffee, cocoa, and edible oils, may keep near-term margins under pressure, the expected moderation in milk prices alongside its strong pricing power and efficiency initiatives should partly offset cost headwinds.

Britannia - Target Price: ₹7,170

Most FMCG players like Britannia are seeing early demand recovery across urban and rural markets, supported by stable input costs and improving margins. The recent GST cuts on key food items should enhance affordability, lift consumer sentiment, and drive stronger traction in daily-use and low-unit-price SKUs. Demand recovery is expected to accelerate, positioning branded FMCG and discretionary categories for healthier volume growth in the near term.

DOMS Industries - Target Price: ₹3,000

The company has been executing strategic initiatives over the past few years, which are expected to drive growth in the coming years. Key initiatives include: Managing end-to-end operations to enhance efficiency while maintaining high-quality standards. The new 44-acre greenfield facility will further accelerate growth, expanding beyond the small pencil segment into the larger pens category, broadening the product portfolio. Additionally, entering fast-growing segments such as bags, toys, and diapers will provide an incremental growth boost, significant potential for distribution expansion, with DOMS currently reaching 1.5 Lc outlets. The company has scope to scale up to ~3-3.5 Lc outlets, particularly in the underpenetrated east and south markets and smaller towns in India, the strategic partnership with FILA, enabling DOMS to expand its global footprint while leveraging FILA’s R&D capabilities, offering a long-term competitive edge.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.