A Study on Balance Sheet, Cash Flow and Profitability of Indian FMCG Sector Companies (Fy 2024-Fy 2026)

The Indian Fast-Moving Consumer Goods (FMCG) sector has expanded rapidly over the last decade, driven by rising incomes, urbanization, and a gradual shift from unorganized to organized retail. This paper examines the financial health of the sector by analyzing five major companies—Hindustan Unilever Limited (HUL), Britannia Industries Limited, Dabur India Limited, ITC Limited, and Nestlé India Limited—drawing on a Summer Internship Project (SIP) carried out at Prasuta Capital. The study combines a review of the Indian FMCG industry, an analysis of the selected companies' business models, and a three-dimensional financial analysis covering Balance Sheets, Cash Flow Statements, and Profitability from FY 2024 to FY 2026. The paper finds that large FMCG entities operate with structurally low leverage and highly cash-generative models, allowing them to maintain negative working capital safely due to immense supplier bargaining power. Based on these observations, the paper recommends ITC Limited as the most robust entity financially, while identifying Nestlé India and Britannia as high-potential due to recent capex recoveries and active deleveraging. The study is exploratory, utilizing secondary financial data, and its findings provide actionable insights for financial analysts and investors evaluating consumer-space equities.