New Delhi, Jan. 8 -- The margins of consumer staple companies are expected to improve in the fourth quarter of FY26 (January-March) as lower consumer prices following GST cuts support recovery, according to a report by Systematix Research.

The report highlighted that lower consumer prices following GST cuts and easing input costs also due to low inflation are likely to support margin recovery in the quarter.

"We expect margins to improve materially in 4Q26 as costs continue to ease, we expect gradual QoQ improvement in volume demand on (1) easing consumer pricing (as input costs pull back)" the report stated.

The report expects this improvement is expected to be driven by two key factors, easing consumer pricing as raw material costs p...