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Informist, Wednesday, May 6, 2026

 

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--Godrej Consumer: Expect some margin pressure next quarter due to W Asia war 
--CONTEXT: Comments by Godrej Consumer mgmt in post-earnigns analyst call 
--Godrej Consumer: Expect higher revenue growth in personal care for FY27 
--Godrej Consumer: Increased soap prices by 5% in April 
--Godrej Consumer: Increased detergent prices by 5-7% in April 
--Godrej Consumer: Expect pricing growth in some categories 

 

By Avishek Rakshit & Gunjan Rajput

 

KOLKATA/NEW DELHI – Godrej Consumer Products Ltd. expects margins to remain under pressure the first half of the current financial year due to disruptions caused by the military conflict in West Asia. However it sees revenue improve at home, largely on account of price hikes, the company's management said in post-earnings analysts call on Wednesday. 

 

"To be honest, this quarter and next quarter, I expect some pressure on EBITDA percentage margin, but we are seeing upsides in a variety of other areas. We're seeing pricing growth higher than what we thought we'd get," Sudhir Sitapati, managing director and chief executive officer at Godrej Consumer, told sector analysts.

 

Following the US-Israel's attack on Iran and the subsequent blockade of the Strait of Hormuz, there is a global shortage of crude oil and container availability. With shipping costs going up, commodities across the globe have witnessed inflation. 

 

Sitapati said that commodity inflation is exerting pressure on categories like laundry and household insecticides and the company may continue to feel cost pressures as crude oil remains range-bound at $100-$110 a barrel.

 

However, Godrej Consumer will increase prices if the situation demands so and commodity prices climb higher than current levels. The company has already increased prices across products. For instance, in April, it increased prices of soap by 5%, detergent by 5-7%, and insecticide by 4-5%. 

 

As a result, Sitapati expects some pricing-led growth in the current quarter and coming quarters which could aid its top line. Although the company expects its home care business to grow more than personal care, the recent price increases will lead to higher growth rates, the official said. 

 

However, Sitapati said that the demand for soaps has not increased as previously anticipated after the cut in goods and services tax rates. 

 

"As far as soaps go, it doesn't seem to have shown, at least for us. I think categories which are slightly underpenetrated have benefited from the GST price cut, but soaps and a few other universally-penetrated categories, the impact has been limited," he said.

 

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.

 

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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