According to the latest note by HDFC Securities, the consumer discretionary sector in the fourth quarter of the financial year 2026 may deliver upbeat performance. The brokerage attributed this to a broad-based demand recovery taking root across various segments. 

“This topline performance is mainly driven by sustained momentum in jewelry (driven by a surge in gold prices), ongoing customer acquisition efforts in new-age businesses, and recovery in apparel growth YoY,” HDFC Securities said.

DMart and Trent

Avenue Supermarts Ltd (DMart) is expected to post a steady Q4 outlook, with reported revenue growing 19% year-on-year to Rs 17,200 crore, it said, noting that the retail chain added 58 net stores during the quarter, bringing its total count to 500. 

“We expect annualized sales per sq. ft to grow ~3% YoY to INR36.9k. Building in ~10bps EBITDAM expansion YoY to 6.9% as intense competition continues to elevate employee and other operational costs,” the brokerage said.

HDFC Securities maintained an 'Add' rating on DMart with a target price of Rs 4,300.

Retail peer Trent Ltd also delivered a strong showing, with its reported revenue rising approximately 20% year-on-year to Rs 4940 crore. The brokerage projects roughly 26% and 18% year-on-year growth for its Westside and Zudio brands, respectively. Trent has a 'Buy' rating with a target price set at Rs 4,300.

Titan

Titan Company Ltd reported roughly 46% year-on-year growth in revenue, fueled by domestic jewellery sales matching that 46% jump. This surge was driven by a steep increase in gold prices and a rebound to high single-digit buyer growth, the brokerage said.

HDFC Securities has a 'Reduce' call on Titan with a target price of Rs 4,000.

Asian Paints

For Asian Paints Ltd, the brokerage expects an average Q4 outlook. Consolidated revenue is expected to grow by about 5% year-on-year. However, favourable raw material prices are likely to drive an approximate 70 basis point expansion in gross margins to 44.6%, it said.

In the new-age economy, FSN E-Commerce Ventures Ltd (Nykaa) saw its revenue grow 27-29% year-on-year. The company's beauty and personal care (BPC) and fashion segments are estimated to clock roughly 26% and 29% year-on-year growth in gross merchandise value, respectively, HDFC Securites said.

The brokerage has a 'Sell' rating on Nykaa, pegging the target price at Rs 205.

Food delivery giant Swiggy Ltd is projected to record an adjusted revenue growth of about 40% year-on-year to Rs 6190 crore. Swiggy's quick commerce division is expected to outpace food delivery, with an 80% year-on-year growth in gross order value compared to 19% for the food delivery segment. 

Swiggy holds a 'Buy' rating with a target price of Rs 460.

Similarly, Eternal Ltd is expected to post adjusted revenues of approximately Rs 17900 crore. Its quick commerce arm is projected to see a 100% year-on-year growth in its number of orders, outpacing the 18% growth seen in food delivery. HDFC Securities maintained a 'Buy' rating on Eternal with a target price of Rs 340.