Earnings Outlook
Price hikes, volume to aid Godrej Consumer post PAT growth
This story was originally published at 19:11 IST on 6 August 2025
Register to read our real-time news.Informist, Wednesday, Aug. 6, 2025
By Avishek Rakshit
KOLKATA – Consumer goods companies have been witnessing an improvement in demand conditions in urban markets on a trailing basis, although it continues to be lower than pre-pandemic levels. Demand from rural India, on the other hand, has continued to fare better than urban markets since January and is expected to remain a key demand driver for the consumer goods sector, at least in the first half of the ongoing financial year.
Like all other consumer goods companies, Godrej Consumer Products Ltd. too faced similar demand conditions for its products, but its focus on reviving underlying volume growth and stabilising its international business could yield financial dividends for the company in the June quarter.
The consumer goods company is expected to report a consolidated net profit of INR 4.9 billion for the June quarter as against INR 4.5 billion in the year-ago quarter, registering a 7.9% on-year growth, according to the average of estimates from 13 brokerages. Revenue is expected to increase 9.4% on year to INR 36.4 billion from 33.3 billion in the year-ago quarter, the estimates show.
On a trailing basis, the net profit is expected to rise 18.1% and revenue could grow marginally by 1.3%. Godrej Consumer Products had reported a net profit of INR 4.1 billion in the March quarter on revenues of nearly INR 36.0 billion. The company will declare its results for the quarter ended June on Thursday.
Antique Stock Broking Ltd. estimates the highest net profit at INR 5.4 billion and Nomura Equity Research estimates the lowest net profit at INR 4.4 billion. Nomura also has the lowest revenue estimate at INR 35.3 billion and InCred Research Services Pvt. Ltd. has the highest revenue estimate at INR 37.3 billion.
Brokerages said that Godrej Consumer Products' top line growth in the June quarter is expected mostly to be driven by price increases taken by the company in the past few quarters in a staggered way. Kotak Institutional Equities estimates a 4% volume growth and 6.4% value growth in the company's domestic business, which usually accounts for over 60% of its overall revenues. Nomura said in the company's Indian business, the household insecticides business is likely to be impacted in the June quarter on account of a high base but it is expected to pick up during monsoons, which coincide with the September quarter. Godrej Consumer Products had reported a high 12% volume growth in the household insecticides business – a key volume driver for the company, in the year-ago quarter.
Nuvama Wealth Management Ltd. projected a lower domestic volume growth of 2% and a 6% value growth in the June quarter. It expects the company's domestic business mix to be adversely affected on a trailing basis as growth in personal care products segment is seen declining in low-to-mid-single digits. Soaps, which account for one-third of the company's domestic business, are likely to face margin pressures and heightened competitive intensity.
The company's business in Indonesia, which accounts for 14% of its consolidated top line, is expected to face headwinds due to higher competitive intensity, Nomura said, adding that revenue from Indonesia is expected to grow 6% on year.
Godrej Consumer Products is expected to report an earnings before interest, tax, depreciation, and amortisation of INR 7.4 billion, according to the average of estimates from 12 brokerages. The highest EBITDA estimate of INR 7.8 billion is from InCred and the lowest of INR 6.7 billion is from Nomura.
On Wednesday, shares of Godrej Consumer Products ended at INR 1,202.60, down 1.4% on the National Stock Exchange. The shares are down nearly 3.9% since the company announced its March quarter earnings in May.
Of the 18 research reports on the company available with Informist, 16 have a 'buy' rating on the stock at an average target price of INR 1,384. One brokerage has a 'hold' rating and the other has a 'sell' rating on the stock.
Following are the Apr-Jun earnings estimates for Godrej Consumer Products Ltd., based on reports from 13 brokerages in descending order of the estimate of net profit:
Broker Name | Net Sales (in INR million) | Net Profit (in INR million) | EBITDA (in INR million) |
Antique Stock Broking Ltd | 36,708.00 | 5,394.00 | 7,812.00 |
Motilal Oswal Financial Services Ltd | 36,759.00 | 5,104.00 | 7,538.00 |
Emkay Global Financial Services Ltd | 35,766.00 | 5,038.00 | 7,358.00 |
InCred Research Services Pvt Ltd | 37,302.00 | 4,946.00 | 7,816.00 |
JM Financial Institutional Securities Pvt Ltd | 36,490.00 | 4,929.00 | 7,444.00 |
Dolat Capital Market Pvt Ltd | 36,972.00 | 4,922.00 | 7,596.00 |
Anand Rathi Share and Stock Brokers Ltd | 36,981.00 | 4,831.00 |
|
Nirmal Bang Equities Pvt Ltd | 36,964.00 | 4,817.00 | 7,465.00 |
Systematix Shares and Stocks (India) Ltd | 36,595.00 | 4,774.00 | 7,551.00 |
Nuvama Wealth Management Ltd | 37,047.00 | 4,734.00 | 7,595.00 |
Elara Securities (India) Pvt Ltd | 35,400.00 | 4,665.00 | 7,295.00 |
Kotak Institutional Equities | 35,470.00 | 4,658.00 | 7,095.00 |
Nomura Equity Research | 35,318.00 | 4,417.00 | 6,746.00 |
Average | 36,444.00 | 4,863.77 | 7,442.58 |
End
Edited by Tanima Banerjee
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