Godrej Consumer Eyes Double-Digit Surge in Q1, But Margins Face Heat

Godrej Consumer Products Ltd (GCPL) has issued a bullish Q1 FY26 update, projecting double-digit consolidated revenue growth and strong momentum across key verticals, even as standalone EBITDA margins are expected to fall below the normative range due to elevated brand investments and input costs.

 

Key Highlights:

 

- GAUM Rebound: The Godrej Africa, USA, and Middle East (GAUM) business is set to deliver strong double-digit value growth for the second straight quarter, reversing last year’s currency-led drag.

 

- India Business Snapshot:

- Standalone revenue expected to grow in high single digits, led by Home Care, which is projected to clock double-digit value growth.

- Personal Care to see modest growth amid price-volume rebalancing.

 

- Margin Pressure:

- Standalone EBITDA margin likely to dip below historical averages, impacted by higher A&P spends and inflation in palm-based inputs.

- Gross margins, however, are expected to improve YoY due to cost optimization and mix gains.
 

- Sequential Optimism: GCPL anticipates performance to improve quarter-on-quarter through FY26, driven by rural recovery, festive tailwinds, and new product launches.

 

- International Outlook:

- Indonesia continues to post high-single-digit volume growth with double-digit constant currency sales.

- GAUM’s turnaround is attributed to inventory normalization and pricing resets in Nigeria and West Africa.

 

With a strong topline trajectory and strategic bets in pet care and premium formats, GCPL is balancing growth with profitability recalibration as it navigates a dynamic FMCG landscape.

 

Source: Moneycontrol, Economic Times, Godrej Consumer Press Release