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Informist, Saturday, Apr. 18, 2026

 

By Avishek Rakshit

 

KOLKATA – Improving consumer demand as a result of previous tax cuts and revision in personal income tax is expected to boost the volume growth of the fast-moving consumer goods industry in the March quarter. In line with the sector's trends, Godrej Consumer Products Ltd. too reaped the benefits of volume growth leading to an improvement in its on-year financial performance in the March quarter.

 

Godrej Consumer is expected to report a sharp 28.70% on-year jump in its consolidated net profit for the March quarter to INR 5.70 billion. The company's revenue is expected to increase by around 9% on year to over INR 39 billion. Both the numbers are based on the average of estimates from 10 brokerages. However, on a trailing basis, the company's bottom line is likely to decline by over 3% and the top line is expected to fall by over 4%. Godrej Consumer will declare its results for the March quarter on May 6.

 

The highest estimate for the company's consolidated net profit is INR 5.93 billion from Nirmal Bang Equities Pvt. Ltd. The lowest estimate is INR 5.52 billion from Nomura Equity Research. The highest estimate for consolidated revenue is INR 39.86 billion by Motilal Oswal Financial Services Ltd. and the lowest is INR 38.33 billion by Nuvama Wealth Management Ltd.

 

The cut in goods and services tax in September last year, which was positive for one-third of the company's portfolio, had led to temporary sales disruption which lasted till early January. However, trade disruptions normalised in the March quarter and the company was able to register domestic sales volume growth.

 

In its quarterly business update earlier this month, Godrej Consumer said its standalone business, which largely is Indian operations, is expected to deliver double-digit underlying sales growth and high-single digit underlying volume growth in the March quarter. The sharp increase in the company's net profit, however, is likely due to the transition to a new tax regime in 2025-26 (Apr-Mar), resulting in a lower effective tax rate, Nuvama said.

 

Although Godrej Consumer's input costs like palm oil remained elevated in Jan-Mar, the company's fully electrified operations at manufacturing units helped shield any disruptions caused by gas costs and its availability as a fallout of the war in West Asia, according to sector analysts. Many sectors like fertilisers and automobiles are facing manufacturing disruptions due to gas prices and its availability.

 

However, in its business update, Godrej Consumer said it is closely monitoring the situation of high crude oil prices and has taken pre-emptive measures to mitigate the impact. "Our procurement strategy draws from multiple geographies, reducing concentration risk on stock availability. Importantly, strong brand positioning and large saving projects give us adequate headroom to calibrate trade and other expenses and adjust consumer prices in line with commodity costs," Godrej Consumer said in the business update.

 

The company's business in Indonesia, which accounts for 12% of its annual revenue, is expected to remain soft in the March quarter as well – in line with the past few quarters. The company has been facing increased competition in Indonesia and has cut prices previously to retain its market share. Sector analysts estimate Godrej Consumer's underlying volume growth in mid-single digit in the March quarter with market share gains across categories.

 

Godrej Consumer is expected to report earnings before interest, tax, depreciation, and amortisation of INR 8.47 billion for the March quarter, according to the average of nine estimates. The highest estimate for EBITDA is INR 8.73 billion from Motilal Oswal. The lowest EBITDA estimate of INR 8.28 billion is from Systematix Shares and Stocks (India) Ltd.

 

Nuvama said consolidated gross margin is likely to expand by 150 basis points on year to 54% while EBITDA margin is anticipated to expand by 150 bps on year to 22.6% in the March quarter.

 

On Friday, shares of Godrej Consumer ended at INR 1,109.40 on the National Stock Exchange, up 2.6%. The shares are down 10.56% since the company announced its December quarter earnings in January.

 

Of the 12 research reports on the company available with Informist, 11 have a 'buy' recommendation on the stock for an average target price of INR 1,416. One brokerage has a 'hold' recommendation on the stock.

 

Following are the Jan-Mar earnings estimates for Godrej Consumer from 10 brokerages in descending order of the estimate of net profit:

 

Broker Name	Net Sales (in INR billion)	Net Profit (in INR billion)	EBITDA (in INR billion)
Nirmal Bang Equities Pvt Ltd	39.51	5.93	8.33
Motilal Oswal Financial Services Ltd	39.86	5.83	8.73
Nuvama Wealth Management Ltd	38.33	5.81	8.66
Elara Securities (India) Pvt Ltd	38.60	5.80	8.40
Kotak Securities Ltd	39.01	5.66	8.58
Systematix Shares and Stocks (India) Ltd	39.31	5.64	8.28
JM Financial Institutional Securities Pvt Ltd	39.25	5.64	8.42
Anand Rathi Share and Stock Brokers Ltd	39.49	5.62
Equirus Securities Pvt Ltd	39.51	5.61	8.36
Nomura Equity Research	39.05	5.52	8.47
Average	39.19	5.70	8.47

 

End

 

Edited by Ashish Shirke

 

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