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Informist, Wednesday, May 6, 2026

By Avishek Rakshit 

KOLKATA – Even as Godrej Consumer Products Ltd. reported its highest ever consolidated sales growth on-year in the March quarter since September quarter of 2021-22 (Apr-Mar) on strong volumes, the company's net profit lagged Street's expectations. 

Godrej Consumer reported around 10% on-year growth in its consolidated net profit to INR 4.52 billion as against the Street's estimate of INR 5.70 billion, while its consolidated sales increased a little more than 11% on year to INR 39 billion, largely in line with the Street's estimate. 

For the quarter ended March, Godrej Consumer has factored in an exceptional item of INR 929.5 million which includes the statutory impact of the new labour codes on gratuity and leave encashment benefits and litigation costs in the US, severance pay and other restructuring costs as part of restructuring its operations in Latin America and Africa. It also includes an additional loss attributed to the sale of investment in Godrej East Africa Holdings Ltd. and reversal of an investment impairment provision. In the corresponding quarter a year ago, Godrej Consumer had incurred a similar exceptional item expense of INR 313.6 million. 

Discounting the one-time expenses and tax adjusted for the year ago period, Godrej Consumer's profit in the March quarter was INR 7.44 billion as against INR 6.71 billion in the year-ago quarter. It is not known if brokerages had factored in the one-time expenses when giving their net profit projections. 

Godrej Consumer's sales growth in the March quarter was driven by an underlying consolidated volume growth of 6% on year and 8% volume growth on a standalone basis. 

"Q4 FY2026 (Jan-Mar) has been a quarter of strong, broad-based performance for Godrej Consumer Products, fully aligned with our expectations and strategic priorities," Sudhir Sitapati, managing director and chief executive officer at Godrej Consumer, said in a statement. "The quarter ends a year in which the consistent execution of our Goodness Manifesto, our focus on category development and our discipline on cost have come together to deliver healthy, profitable growth across our portfolio."

Net sales in India increased 10% on year to INR 23.61 billion and revenue from Indonesia increased 3% on year to nearly INR 5 billion in the March quarter. Africa, the US and West Asian operations reported a 20% on-year top line growth at INR 8 billion and Latin American operations reported 26% on-year revenue growth to over INR 3 billion. 

During FY26, the company's consolidated net profit increased marginally by less than a percent to INR 18.61 billion and consolidated sales increased over 8% on year to nearly INR 152 billion. 

"EBITDA (earnings before interest, tax, depreciation, and amortisation) grew 18%, with margins at a healthy 24.7%, supported by disciplined cost management, calibrated pricing actions and improved operating leverage," Sitapati said. 

The company's home care portfolio sales grew by 12% on year to INR 11 billion and the household insecticides category delivered strong broad-based growth. Electrics delivered strong growth in the quarter and has been gaining market share consistently. Incense sticks continue to scale up strongly and are the largest branded stick in the category, and non-mosquito portfolio continues to deliver solid growth, the company said in a statement. 

The personal care portfolio grew by 3% in the March quarter to INR 11 billion. Skin cleansing continues to upgrade to premium formats. Soaps continue on a positive trajectory due to improving affordability post Goods and Services Tax reduction, are winning competitively, and are gaining market share led by strong in-market execution, the company statement said. Soaps and air freshers gained market share in the March quarter, Godrej Consumer said. 

"In Indonesia, the pricing pressures we have been calling out over the last several quarters have now largely bottomed out, and we are seeing increasingly clear early signs of stabilisation. The business delivered 4% underlying volume growth and 3% sales growth, and we continue to expect operating conditions to improve from FY27 as the market normalises," Sitapati said. 

EBITDA in Africa, the US and West Asia grew 2%, but it was affected in Latin America by certain one-time costs in the quarter. At a consolidated level, EBITDA was up 10% on year in the March quarter while in India it was up 18%.

Godrej Consumer's consolidated operating margin in the March quarter was 21.7% as against 21.6% in the year-ago quarter. Consolidated sales in the March quarter rose 7% on year in constant currency terms and the company's publicity costs declined marginally on year to INR 2.7 billion in the March quarter. The company will pay INR 5 per share as interim dividend with the record date being May 12.

"Looking ahead, we enter FY27 from a position of strength. Our India business is well placed to deliver continued, calibrated growth at normative EBITDA margins, supported by improving demand trends, a strengthening innovation pipeline and consistent in-market execution," Sitapati said. 

On Wednesday, shares of Godrej Consumer Products closed 0.7% lower at INR 1,094.10 on the National Stock Exchange. End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Deepshikha Bhardwaj

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