New Delhi, May 6 -- Consumer sector companies are unlikely to pass on the benefits of reduced raw material prices to the end customers and instead use this opportunity to improve their gross profit margins, according to a report by Nomura, a global financial services firm.

The report added that the gross margin of such companies will start improving from second quarter of FY 26 onwards while it will be down year-over-year in the first quarter of FY26.

The consumer price inflation (CPI) for the month of March saw a sharp decline, it dropped to a 67-month low of 3.34 per cent, mainly due to a significant decline in food prices.

The highest moderation in raw materials (RMs) is seen in Wheat, Palm Oil and Crude Oil, while inflation is stil...