Revenue for the quarter grew 4.3% year-on-year to Rs 3,825 crore, while EBITDA slipped 3.5% to Rs 733.6 crore. The operating margin came in at 19.2%, down from 20.7% a year earlier.
The company’s India operations delivered steady growth, with sales rising 4% and volumes increasing 3%, led by strong double-digit expansion in non-soap categories.
CEO Sudhir Sitapati described the recent GST rate cut as a “positive long-term move,” though he acknowledged that it temporarily disrupted trade channels, particularly in soaps and hair colour segments.
Overseas performance was uneven — Indonesia registered mid-single-digit volume growth but a 7% drop in constant-currency sales, while Africa, the US, and the Middle East recorded robust 25% growth in rupee terms. Meanwhile, Latin America and other geographies reported a 9% decline in rupee revenue.
What are analysts saying?
Citi maintained its Buy rating on Godrej Consumer Products with a revised target price of Rs 1,350 (earlier Rs 1,400), an upside of 20% from the last close of Rs 1,120 per share on the NSE. Citi cited continued optimism on the company’s medium-term growth prospects despite a 4–5% cut in FY26–28 earnings estimates due to lower margin assumptions. The brokerage noted that Q2 performance was impacted by GST transition issues in India and macroeconomic weakness in Indonesia. However, management expects the 3–4% destocking seen in Q2 to reverse in Q3. Citi said it will closely watch the pace of margin expansion in the coming quarters.
Elara Capital maintained its Accumulate rating on Godrej Consumer Products, cutting its target price to Rs 1,240 from Rs 1,350. Elara marginally cut its FY26–28 EPS estimates by 2.8–6.6%, expecting FY26 EBITDA growth to fall slightly short of double-digit guidance, though it anticipates improvement in H2 aided by easing palm oil prices and a stronger product mix.
Goldman Sachs reiterated its Buy rating on Godrej Consumer Products, raising its target price to Rs 1,425 from Rs 1,375. The brokerage said consolidated EBITDA declined 3.5% year-on-year—about 2% below its estimates—while revenue grew 4.3% YoY, largely in line. The quarter was hit by GST transition headwinds in India, which are expected to reverse in the coming quarters. Management maintained guidance of high single-digit volume growth for FY26, implying double-digit growth in the second half, supported by strong underlying volumes (excluding soaps) in the first half. Goldman highlighted GCPL’s definitive agreement to acquire men’s face wash brand Muuchstac, which it plans to scale through offline distribution, modern trade, and quick commerce platforms. Management expects the acquisition to be EPS accretive within a year.
Godrej Consumer shares are down over 11% in the last 6 months.
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