Budget 2025: Top Winners And Losers After FM Sitharaman's Speech

The Union Budget 2026 has brought a mix of reactions across various sectors, with some emerging as clear winners while others face challenges. Here's a detailed analysis of the top winners and losers based on insights from CLSA and UBS.

Consumer Sector

• Urban Consumption Boost: Both CLSA and UBS highlight that the reduction in personal income tax slabs will significantly benefit urban consumption. Key beneficiaries include companies like Zomato, Swiggy, DMart, Titan, and various quick-service restaurants (QSRs) such as RBA, Jubilant, WLDL, and Devyani. Within consumer staples, urban-focused companies like Nestle, Britannia, Varun Beverages, and Tata Consumer are expected to see positive impacts.

• Healthcare for Gig Workers: CLSA notes that the provision of healthcare for 10 million gig workers is a positive development for companies like Zomato and Swiggy.

Automotive Sector

• Boost from Income Tax Cuts: UBS and CLSA both agree that the income tax cuts will drive demand for two-wheelers (2Ws) and passenger vehicles (PVs). This is particularly beneficial for urban-focused segments like scooters, 125cc motorcycles, and entry-to-mid segment cars. Key beneficiaries include Maruti Suzuki (MSIL), Hyundai (HMIL), Mahindra & Mahindra (M&M), Tata Motors (TTMT), Bajaj Auto (BJAUT), Hero MotoCorp (HMCL), Eicher Motors (EIM), and TVS Motor Company (TVSL)

Insurance Sector

• Increased FDI Limit: CLSA highlights that the increase in the FDI limit for the insurance sector to 100% is a significant development. This change allows foreign insurers to enter the Indian market without a local partner, potentially increasing competition.

Pharmaceutical Sector

• Increase in Medical Seats: UBS points out that the addition of 10,000 medical seats in FY26 and a total of 75,000 seats over the next five years will lead to more prescribers and higher volume growth for Indian formulations, benefiting the pharmaceutical sector.

Rural Consumption

• Limited Support: CLSA notes that the budget has limited announcements to boost rural consumption, which is negative for companies like Hindustan Unilever that have a significant rural market presence.

IT Sector

• Slightly Negative Impact: According to CLSA, the budget's support for setting up Global Capability Centers (GCCs) in Tier-2 cities is slightly negative for the Indian IT sector. This move could divert potential market share from Indian IT companies to GCCs.

India Energy

• CLSA highlights that the budget did not announce any subsidy for LPG losses incurred by oil marketing companies like IOC, BPCL, and HPCL. This is a significant negative for these companies, which have faced substantial under-recoveries