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Informist, Friday, Aug. 7, 2026

By Ruchira Kagita

MUMBAI – Godrej Consumer Products Ltd. is expected to post its best-ever on-year sales growth in 20 quarters for Apr-Jun, driven by healthy volumes. However, the company's earnings before interest, taxes, depreciation, and amortisation margin are expected to contract due to cost inflation. While the company's "speedboats" comprising Godrej Aer, Godrej Fab, and Goodknight Agarbatti will continue their contribution to sales, growth in the international markets, particularly Indonesia, is expected to be robust.

Godrej Consumer is expected to report a consolidated net profit of INR 5.29 billion, 12% higher from a year ago, as per the average of estimates from 12 brokerages. The expectations vary from a low of INR 4.8 billion from Nirmal Bang Equities Pvt. Ltd. to a high of INR 5.58 billion from Emkay Global Financial Services Ltd. The company's profit is estimated to fall sequentially for the second quarter in a row and this time by almost 3%.

"Overall, across the FMCG industry we have seen an acceleration in value growth with the demand environment remaining stable," Godrej Consumer had said in a pre-quarterly press release. Weather-linked disruptions, especially due to El Nino, are not seen majorly disturbing rural demand too much due to the diversity of its portfolio mix, the company said.

The fast-moving consumer goods player's revenue from operations for the reporting quarter is pegged to be 15% higher at INR 42.12 billion. Godrej Consumer expected its consolidated sales to be in the high teens, according to a pre-quarterly business update. Revenue growth for the June quarter is ahead of its "full-year guidance of double-digit revenue growth," the company said. The lowest estimate for revenues is INR 40.35 billion from Nirmal Bang and the highest is INR 43.24 billion from Bank of America Global Research. Sales are seen rising 8% quarter-on-quarter.

VOLUME BOOST

Godrej Consumer's volumes for the June quarter are expected to be in high single digit on a standalone and consolidated basis, as per its business update. This matches the company's volume expectations for the current financial year.

The company's sales from its homecare vertical are seen rising 11-12% on year, as per estimates from PhillipCapital (India) Pvt. Ltd. and Nuvama Wealth Management Ltd. Strong demand for its fabric wash, air care, and the continued scale-up of its incense sticks segment are expected to support the home care business, PhillipCapital said. This segment reported a sales growth of 16% for the year-ago June quarter.

Over the long term, sales from the personal care segment are anticipated to rise 7-8% on a yearly basis despite soaps, which make up a significant portion of this division, not seen as a "game changer" this year, Managing Director and Chief Executive Officer Sudhir Sitapati had told analysts. Revenues from personal care had inched up 4% on year in the March quarter and 1% in the year-ago June quarter. Its non-soaps portfolio volumes are growing in high teens, the company had said in its annual report for financial year 2025-26 (Apr-Mar).

The home and personal care product manufacturer's growth momentum is expected to sustain in the medium term, ICICI Securities Ltd. said. The brokerage is confident of its new launches and a turnaround in its international markets.

Godrej Consumer's consolidated EBITDA for Apr-Jun is seen to be ahead of the double-digit forecast for the year, the company had said in its business update. The EBITDA is likely to come in at INR 7.91 billion for the quarter, according to the average of 10 estimates. This estimate indicates that the company's margin would fall to 18.8% for the reporting quarter. It had reported a consolidated EBITDA margin of 19.2% for the year-ago quarter.

The company's top executives had said they expect EBITDA margin to be under pressure till September quarter. Costs in laundry and household pesticide segments have gone up, they said. "...laundry does get pretty badly affected by crude," Sitapati said. Notwithstanding, the company's lower advertising and promotional spends are likely to mitigate some of the inflationary pressures.

The company had hiked prices by 5% in soaps, 7% in household insecticides, and 6-7% in detergents in the reporting quarter. These price hikes will likely offset some of the cost hit the company suffered. Prices of detergents could be hiked again but in tune with the market leader, Hindustan Unilever Ltd.'s decision, the management said.

INDONESIA BUSINESS

The Godrej group company's Indonesia business is likely to post steady growth for the June quarter, with sales likely to grow by around 15% on year. "The business is back on a profitable growth journey," the company had said in its quarterly update. Volumes may grow by about 5% and the value of products in high single digits, the management had told analysts in May.

For the full year, the company's underlying volume growth there is expected to be around 5% and revenues in high single digits. Indonesia contributed 12% to the company's total sales in FY26.

AFRICA, US, AND WEST ASIA BUSINESS

The Africa, US, and West Asia geography, which contributed 21% to total sales in FY26, delivered an "exceptionally strong" June quarter, the company had said in its business update. Volume growth in teens drove double-digit sales growth, it said.

Sales across in these countries likely grew around 20% on year, as per Nomura Equity Research and Nuvama. Currency-linked tailwinds are expected to have supported sales in these geographies, Nomura said.

Godrej Consumer will detail its June quarter earnings Friday. Thursday, shares of Godrej Consumer closed nearly 1% higher at INR 1,077.30 on the National Stock Exchange. The stock has risen nearly 5% since the company announced its earnings for the March quarter.

Of the 13 research reports on the company available with Informist, 12 have a "buy" recommendation on the stock with an average target price of INR 1,338. This implies an upside of around 24% from the stock's closing price Thursday. Only one brokerage has a "hold" call with a target price of INR 1,140.

Following are the estimates for the June quarter earnings of Godrej Consumer Products, in INR billion, from 12 brokerages, in descending order of the net profit estimate:

End

Edited by Shubhayan Bhattacharya

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