The company said the quarter saw volatility in input costs due to crude oil and raw material price movements, along with sourcing challenges that impacted fill rates across markets. However, it said operating performance was supported by agile planning, sourcing actions and calibrated pricing measures.
“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,” it said.
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At a consolidated level, Godrej Consumer expects revenue growth in the high-teens, ahead of its full-year double-digit guidance, driven by high single-digit underlying volume growth (UVG). EBITDA is also expected to come in ahead of double-digit guidance, although margins are likely to be lower due to elevated input costs.
“Consolidated EBITDA is also expected to land ahead of our double-digit guidance, although margins will be lower due to exceptional cost pressures,” it said.
The standalone business is expected to deliver double-digit revenue growth, supported by high-single-digit volume growth, with broad-based expansion across categories.
International operations also reported strong momentum. The Indonesia business delivered mid-teens revenue growth, driven by double-digit volume growth and sustained market share gains across categories. The company said competitive pressures are easing and the business is returning to a profitable growth trajectory.
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“Our Indonesia business delivered a meaningful step-up in performance, with mid-teens revenue growth on the back of double-digit underlying volume growth,” the company said.
The GAUM (Godrej Africa, USA, and Middle East) business delivered another strong quarter, reporting double-digit sales growth in the teens, driven by strong volume growth and broad-based performance across geographies.
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, Godrej Consumer Products said.
“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 optimisation – and
we expect margins to recover progressively through the year.
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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, the company said.
“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,” it added.
Shares of Godrej Consumer Products Limited ended at ₹1,074.00, down by ₹3.30, or 0.31%, on the BSE.
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