Godrej Consumer Products Anticipates Double-Digit Consolidated Revenue Growth in Q1 FY26

Godrej Consumer Products Limited (GCPL) has provided a preliminary update for the first quarter of fiscal year 2026 (Q1 FY26), ending June 30, 2025, anticipating double-digit consolidated INR revenue growth and high-single digit underlying volume growth. This update, based on internal unaudited management reports, was initially shared on July 4, 2025, and subsequently referenced in a response to a BSE query on July 8, 2025, regarding volume movement.

Q1 FY26 Preliminary Performance OutlookSegment/Metric

Expected Performance

Consolidated

INR Revenue Growth

Double-digitUnderlying Volume Growth (UVG)

High-single digit

Standalone (India)

Value Growth

High-single digitUnderlying Volume Growth (UVG)

Mid-single digitHome Care Value Growth & UVG

Double-digitPersonal Care Value Growth

Low-single digit (impacted by soaps)Standalone (excl. soaps) UVG

Double-digitEBITDA Margin

Below normative range, expected to improve

Indonesia

Underlying Volume Growth (UVG)

Flattish (due to competitive pricing)

GAUM (Africa, USA, Middle East)

Value Growth & UVG

Strong double-digitProfit Growth

Healthy

Q1 FY26 Performance OutlookFor the first quarter of fiscal year 2026, Godrej Consumer Products expects its standalone business in India to deliver high-single digit value growth, supported by mid-single digit underlying volume growth (UVG). The company noted that volume growth has been strongly competitive and is showing sequential improvement. The Home Care business within the standalone segment is projected to achieve broad-based and strong growth, with both value growth and UVG likely to be in double-digits.Conversely, the Personal Care business is anticipated to experience low-single digit value growth, primarily impacted by the performance of soaps. However, the standalone business, when excluding soaps – a category currently undergoing price-volume rebalancing due to commodity volatility – is expected to deliver a very strong performance, with double-digit UVG for the quarter.The standalone EBITDA margin for Q1 FY26 is likely to be below the company's normative range, but GCPL expects this to improve in subsequent periods. The company highlighted that while palm oil prices began moderating towards the end of June, the benefits of this moderation are only expected to be realized in the second half of FY26.In the international markets, GCPL's Indonesia business faced a significant increase in competitive pricing action across all major categories, which is likely to result in flattish UVG for the quarter. In contrast, the GAUM (Godrej Africa, USA, and Middle East) business is projected to deliver strong double-digit value growth and UVG for the second consecutive quarter, with profit growth continuing to be healthy.At a consolidated level, GCPL anticipates double-digit INR revenue growth, driven by high-single digit underlying volume growth for Q1 FY26.Full Year FY26 GuidanceLooking ahead to the full fiscal year 2026, Godrej Consumer Products remains optimistic about its performance trajectory. As guided during its latest Investor Meet in May 2025, the company expects performance to improve sequentially throughout FY26. For the full year, GCPL is on track to deliver mid-high-single digit UVG for its standalone business. Furthermore, the company projects high-single digit consolidated INR revenue growth and double-digit consolidated EBITDA growth for the entire fiscal year.Strategic Context and Management CommentaryThe pre-quarterly update provides an overall summary of the operating performance and demand trends during the quarter ended June 30, 2025, based on internal unaudited management reports. This preliminary update excludes the pet care business. The company has stated that a more detailed performance update will follow once the Q1 FY26 financial results are approved by the Board of Directors.GCPL's communication underscores its commitment to transparency and timely disclosure. The company emphasizes its responsibility to disseminate information that could impact the price or volume of its shares to the stock exchanges. This approach is consistent with its adherence to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015.Regulatory Compliance and Market ContextThe pre-quarterly update was initially submitted on July 4, 2025, post market hours. On July 8, 2025, Godrej Consumer Products responded to an email from BSE Limited regarding a "Volume Movement Letter." In its response, GCPL reaffirmed its compliance with all disclosure requirements under the Listing Regulations and PIT Regulations. The company assured the exchange that it consistently submits mandatory disclosures and will continue to make appropriate disclosures as mandated by applicable regulations. This reiteration of compliance highlights the company's proactive stance in addressing market queries and maintaining regulatory transparency.About Godrej Consumer ProductsGodrej Consumer Products is a prominent emerging markets company, focused on delivering health and beauty products to consumers. As part of the Godrej Industries Group, the company leverages a legacy spanning over 125 years, built on values of trust, integrity, and respect. GCPL serves 1.4 billion consumers globally and holds leading positions in various categories. It ranks among the largest Household Insecticide and Hair Care players in emerging markets, leading in India for Household Insecticides and being the second largest in Indonesia. In Hair Care, it is a leader in serving women of African descent, the number one player in Hair Colour in India and Sub-Saharan Africa, and a leading player in Latin America. The company also holds the second position in Soaps in India and is the top player in Air Fresheners and Wet Tissues in Indonesia.

GCPL is committed to continuous improvement in its business practices and its contribution to a sustainable and responsible future. Through initiatives like Godrej Good & Green, the company aims to foster a more inclusive and greener planet, aligning with the United Nations' Sustainable Development Goals. Additionally, the Godrej DEI (Diversity, Equity, Inclusion) Lab works to empower inclusion and build DEI ecosystems across corporate India.