Godrej Consumer Products Ltd.Revenue +19%, India Margin Hit

Godrej Consumer Products reported Q1 FY27 consolidated revenue growth of 19% with underlying volume growth of 9%, EBITDA up 14% at a 19% margin and net profit up 11%.

India volume grew about 7%, at the lower end of management's range after a poor June for household insecticides and LPG-related fill rates falling 20% to 25%. LPG, kerosene and LABSA costs more than trebled, a hit of close to 6% on India against a price rise of about 5%, and the India EBITDA margin fell by roughly 500 bps sequentially. Management expects Q2 to stay weak and normative margins to return in the second half, with a target range of 22% to 26% for India.

Indonesia grew about 10%, and GAUM delivered an exceptional quarter with EBITDA margin now at a consistent mid-teens level. Household insecticides gained overall market share for the first time in almost a decade. GCPL announced Godrej Rizz, its entry into liquid dishwash, and said it is confident of exceeding full-year guidance on revenue growth and possibly EBITDA growth, while cash may get squeezed.