Revenue for the quarter rose 11% to Rs 3,900 crore from Rs 3,514 crore a year earlier. EBITDA also increased 11% to Rs 841.4 crore from Rs 759.2 crore, while EBITDA margin remained unchanged at 21.6%. Consolidated sales in Q4 FY26 grew 11% year-on-year, supported by underlying volume growth of 6%. The standalone business posted volume growth of 8%, with sales rising 10%.
Among international markets, Indonesia sales increased 3%, while Africa, the US and West Asia delivered 20% growth. For the full FY26, consolidated sales rose 9% year-on-year, driven by 6% volume growth. Standalone sales grew 8% with volume growth of 6%.
What are experts saying?
Morgan Stanley has maintained its Equal-weight rating on Godrej Consumer Products with a target price of Rs 1,159, an upside of 6% from current levels. The brokerage expects stronger pricing-led topline growth in Q1 and Q2FY27, although margins could remain under pressure. It noted that the company implemented price hikes across soaps, detergents and home insecticides in April.
Morgan Stanley highlighted that the India business reported 8% volume growth, while EBITDA margin remained within the guided range. Management has guided for FY27 EBITDA margins in the 24-26% band. The brokerage also pointed to signs of stabilisation in the Indonesia business following weak performance in earlier quarters. However, it flagged crude oil and palm oil inflation as near-term risks. It added that a warmer summer could support demand for soaps but may negatively impact the home insecticides segment.
Motilal Oswal has maintained its “Buy” rating on Godrej Consumer Products with a target price of Rs 1,300, implying a potential upside of 19%.
The brokerage said management remains focused on improving domestic business volumes and driving efficiencies across the value chain. It expects the GAUM business to deliver better profitability growth going ahead, while recovery in the Indonesia business is likely to become more meaningful from FY27 as market conditions stabilise.
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Management also expressed confidence in sustaining profitability momentum in FY27 despite macroeconomic challenges. Motilal Oswal noted that the company is expanding its total addressable market by entering faster-growing categories such as men’s face wash and toilet cleaners, while continuing to strengthen its core portfolio. It added that consistent efforts have also been made to address profitability and growth gaps in the international business. Given the company’s growth-focused strategy, the brokerage said it remains constructive on GCPL.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
