New Delhi, Sept. 16 -- Consumer companies are expected to report improved performance in the second half of the current financial year, aided by festive season demand and the benefits of Goods and Services Tax (GST) reforms, Systematix Research said in a report.

The report noted that consumer staples have shown modest growth, while discretionary spending continues to lag pre-COVID trends.

Results for the first quarter of FY26 were muted, but sequential improvements are already visible. Easing inflation, normalising supply chains, and upcoming festive demand are expected to drive recovery in the second half.

It stated "1QFY26 consumer company results were muted, but sequential improvements and festive season demand are expected to drive...