Godrej Consumer profit rises 13.9% to 523 crore rupees amid margin pressure
Key Facts
Godrej Consumer Products raised consolidated net profit 13.9% year on year to 523 crore rupees in the quarter from July to September 2026, compared with 459 crore rupees in the same period a year earlier, according to NDTV Profit. Revenue grew 19% to 4,413 crore rupees from 3,708 crore rupees a year earlier. But the annual increase in sales and profit did not prevent the company from missing market estimates for key metrics. Net profit was estimated at 551 crore rupees and revenue at 4,422 crore rupees. Operating earnings before interest, taxes, depreciation and amortisation grew more slowly than revenue, while its margin declined from a year earlier.
EBITDA was about 820 crore rupees, up 11.7% from 734 crore rupees in the corresponding period, but below the estimate of 835 crore rupees, according to NDTV Profit. The EBITDA margin fell to 18.6% from 19.8% a year earlier. This shows the gap between revenue growth and EBITDA growth widened during the quarter, while total expenses rose 20.6% year on year, according to Reuters. Raw-material costs increased 8.5%, while purchases of finished goods surged 61.3%. The company said, "The input cost environment remained significantly challenging during the quarter, with inflation intensifying in crude oil derivatives, palm oil and other commodity inputs."
Comparison with recent quarters places second-quarter growth within an expansion trend the company saw at the start of the fiscal year. In the first quarter of fiscal 2027, consolidated net profit rose 11.5% to 505 crore rupees and revenue increased 18.3% to 4,225 crore rupees from the same period a year earlier, according to NDTV Profit. Annual growth in profit and revenue therefore accelerated in the second quarter, with net profit reaching 523 crore rupees and revenue 4,413 crore rupees. But margin pressure also emerged in the first quarter: the EBITDA margin narrowed to 19% from 19.4% a year earlier, despite an increase in operating earnings, according to the same source. The decline to 18.6% in the second quarter continues that trend against the corresponding period a year earlier.
First-quarter figures for the international business show that revenue growth was not confined to one operation: revenue from the company's Africa business rose 47% to 1,006 crore rupees, while Indonesia revenue increased 15% to 487 crore rupees, according to NDTV Profit. These figures provide context on the contribution of markets outside India to the company's performance, but relate to the quarter ended in June 2026 and are not a geographic breakdown of second-quarter results. For the quarter covered here, the available indicators focused on consolidated revenue growth, year-on-year comparisons and margin pressure as expenses rose. Total expenses grew faster than revenue, according to Reuters, while the increase in raw-material costs was below that rate. The largest increase among the cost items cited was in purchases of finished goods, which rose 61.3% year on year.
Alongside the results announcement, the company decided to pay an interim dividend of 5 rupees per share, according to NDTV Profit. The dividend announcement was among the outcomes of a quarter in which net profit increased year on year, although actual profit remained below market estimates. Revenue and EBITDA also fell short of expectations, according to the comparison cited by the source. Taken together, these metrics show a difference between the direction of annual growth and results relative to analyst estimates: profit, revenue and EBITDA all rose from a year earlier, but the company did not meet market estimates for any of them. Available figures do not include details on the interim dividend payment date or record date.
Godrej Consumer left its fiscal 2027 guidance unchanged, according to Reuters. The company is targeting high single-digit growth in standalone underlying volume, alongside double-digit growth in consolidated revenue and EBITDA. Fiscal 2027 runs through March 2027, making the guidance a framework for the rest of the year after second-quarter results. It was maintained despite the year-on-year decline in EBITDA margin and expenses rising faster than revenue during the quarter. It also follows first-quarter growth in revenue and net profit, then faster growth in both in the second quarter compared with the corresponding period a year earlier. The guidance did not provide specific revenue or profit figures; the company kept its stated growth ranges for the year.