Godrej Consumer Products (GODREJCP) Q1 25/26 earnings summary

Executive summary

• Achieved 10% year-over-year consolidated revenue growth, driven by strong underlying volume growth and broad-based performance across geographies, with mid-teen underlying volume growth in standalone business except for soaps, which were impacted by price rebalancing and poor seasonality.

• EBITDA grew 8% year-over-year, though consolidated EBITDA declined 3% in some reports due to cost headwinds; net profit (excluding exceptionals) increased 0% year-over-year, with reported net profit at ₹452 crore.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2025, with an interim dividend of Rs. 5 per share declared.

• International business faced macro headwinds and competitive pressures in Indonesia, offset by robust growth in Africa and strong performance in Latin America.

Financial highlights

• Consolidated revenue from operations for Q1 FY26 was Rs. 3,661.86 crore, up from Rs. 3,331.58 crore year-over-year; India revenue rose to Rs. 2,329.99 crore, and Africa segment revenue increased to Rs. 707.40 crore.

• EBITDA margin for consolidated business at 19.2%; standalone at 21.6%; operating margin for the quarter was 19.0%, compared to 21.8% in Q1 FY25.

• Net profit after tax for the quarter stood at Rs. 452.45 crore, compared to Rs. 450.69 crore in Q1 FY25; basic and diluted EPS for the quarter were Rs. 4.42.

• Home Care sales grew 16% year-over-year; Personal Care sales grew 1%.

• Africa sales grew 30% and EBITDA 15%; Latin America saw high single-digit volume growth and double-digit EBITDA margins.

Outlook and guidance

• Expect sequential performance improvement in FY 2026, with H2 margins better than H1; margin pressure expected to persist in Q2 for Personal Wash due to commodity volatility, with normalization anticipated in H2 FY26.

• Standalone EBITDA margins in H1 FY 2026 likely below normative range, but expected to recover in H2.

• Full-year guidance: mid to high single-digit EVG for standalone, high single-digit consolidated INR revenue growth, and double-digit consolidated EBITDA growth.

• Palm oil price moderation benefits expected in H2 FY 2026.

• Continued focus on automation, cost efficiency, and brand investment to drive future growth.