Godrej Consumer Products Ltd - Quarterly Update: Q1FY27

This update provides an overall summary of the operating performance and demand trends during the quarter ended June 30, 2026. This is based on internal unaudited management reports. A detailed performance update will be shared following the Board of Directors' approval of the Q1 FY27 financial results.

While the quarter saw significant volatility in costs on account of movement in crude prices & other raw materials and faced sourcing challenges resulting in lower fill rates across markets, we are pleased with the way we navigated our business through agile planning, sourcing and calibrated pricing actions. Overall, across the FMCG industry we have seen an acceleration in value growth with the demand environment remaining stable, aided by continued momentum across the broader global economy and consumer sentiment holding up despite crude-led input cost inflation.

Against this backdrop, and consistent with the guidance shared at our Investor Meet (May 2026), the business delivered a sequential improvement in performance across most metrices.

At a Consolidated level, we expect to deliver high-teens revenue growth in Q1 FY27, meaningfully ahead of our full-year guidance of double-digit revenue growth, backed by strong high single digit UVG. Consolidated EBITDA is also expected to land ahead of our double-digit guidance although margins will be lower due to exceptional cost pressures.

Our Standalone business is likely to deliver double-digit revenue growth for the quarter, underpinned by highsingle-digit underlying volume growth. Growth has been broad-based across categories.

Our Indonesia business delivered a meaningful step-up in performance, with mid-teens revenue growth on the back of double-digit underlying volume growth. With competitive pressures now abating and market share gains sustained across categories, we believe the business is back on a profitable growth journey.

Our GAUM (Godrej Africa, USA, and Middle East) business delivered another exceptionally strong quarter, with extremely strong double-digit sales growth on the back of strong underlying volume growth in the teens. The growth has been broad-based across geographies and categories. Our strategy of building FMCG categories continues to see strong consumer traction across markets.

On the commodity front, input costs remained elevated through most of Q1, broadly within the cost impact ranges outlined in our previous update. Encouragingly, costs have begun to ease in the closing weeks of the quarter. Our response has been consistent with our established approach to navigating commodity cycles - calibrated pricing actions, strong delivery on cost-savings programmes, and prudent media optimization - and we expect margins to recover progressively through the year. We remain mindful that El Niño conditions can heighten weather volatility across our key markets, with the potential to disrupt agricultural output and rural demand, though our geographically diversified sourcing and portfolio provide meaningful resilience against such volatility and as such we don't foresee any major impact.

With revenue growth tracking ahead of our original expectations and input costs beginning to ease, we enter the remainder of FY27 with increased confidence. We remain firmly on track to deliver our guidance for the full year with the strong likelihood to exceed the same in select metrics.

We remain confident in the resilience of our portfolio, the strength of our brands, and our ability to deliver sustained, profitable growth going forward.

Shares of Godrej Consumer Products Limited was last trading in BSE at Rs. 1075.85 as compared to the previous close of Rs. 1077.30. The total number of shares traded during the day was 42325 in over 2277 trades.

The stock hit an intraday high of Rs. 1098.00 and intraday low of 1070.60. The net turnover during the day was Rs. 45904028.00.

Source : Equity Bulls

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GodrejConsumerProducts INE102D01028 FMCG