Godrej Consumer Products reported 8% consolidated volume growth and 19% sales growth for the September quarter, while higher input costs and a brokerage-reported margin decline pointed to pressure on profitability.
The company’s Oct. 29 results release said sales grew 15% in constant-currency terms and earnings before interest, taxes, depreciation and amortization (EBITDA) increased 12%. Its unaudited filing put revenue from operations at ₹4,413.09 crore, compared with ₹3,708.19 crore a year earlier. Net profit rose to ₹522.92 crore from ₹459.34 crore. The figures were also covered in EconoTimes’ earlier results report.
Growth differed across businesses. Godrej reported value growth of 19% in home care and 8% in personal care. Standalone sales advanced 13% as underlying volume rose 7%; the company estimated that a trade-inventory correction had a 150-basis-point impact on standalone growth. Sales in Indonesia grew 20%, while combined sales in Africa, the United States and the Middle East rose 40% in rupee terms.
Godrej said higher costs for crude-linked derivatives, palm oils and other inputs had an approximately high-single-digit inflation impact in India and Indonesia. Godrej plans to adjust pricing for soaps and liquid detergents, citing elevated costs and margins below its usual levels. The actions may pass some of the cost burden to consumers, though the company gave no amount or timing.
NDTV Profit’s Oct. 30 brokerage review reported that Jefferies kept its Buy rating but lowered its target for Godrej to ₹1,075 from ₹1,400. The outlet said Jefferies also reduced its earnings-per-share (EPS) estimates for FY2027 and FY2028 by 3%. NDTV Profit put the year-over-year gross-margin decline at 300 basis points and reported that HSBC raised concerns about profitability in India.
Godrej kept its FY2027 forecast unchanged, projecting high-single-digit growth in standalone underlying volume and double-digit growth in consolidated revenue and EBITDA. The board declared an interim dividend of ₹5 per share, with Wednesday, Nov. 4, set as the record date and payment due on or before Nov. 27.
