Godrej Consumer Products (GODREJCP) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 delivered strong, broad-based growth across India, Indonesia, and Africa, with double-digit increases in revenue, EBITDA, and underlying volume growth year-over-year.

• Continued market leadership and share gains in key categories such as Home Care, Personal Care, and Hair Colour, supported by successful new product launches and category expansions.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, were approved, with statutory auditors issuing unmodified review reports.

• Maintained focus on sustainability and ESG targets, with progress in plastic recyclability, renewable energy use, and water positivity.

Financial highlights

• Consolidated revenue for Q1 FY27 was ₹4,225.47 crore, up 19% year-over-year, with underlying volume growth at 9%.

• EBITDA increased 14% year-over-year, with consolidated margin at 19.0%.

• Net profit after tax for the quarter was ₹504.52 crore, up 11% year-over-year.

• India gross margin fell sharply due to a 3x spike in LPG, kerosene, and LABSA costs.

• Price increases implemented, but could not fully offset short-term commodity spikes.

Outlook and guidance

• Confident in exceeding full-year revenue growth guidance; EBITDA and volume growth may also surpass targets.

• Expect volatility in input costs to persist, but anticipate margin normalization by the second half of FY 2027.

• El Niño expected to impact categories variably: positive for Indonesia HI, mixed for India.

• Guidance for India margins remains at 22%-26% range, aiming for 24%-26% annually.

• ESG commitments remain a priority, with targets for increased recyclability, renewable energy, and water and carbon reductions.