Godrej Consumer Products Q1FY26 net profit remains flat, sales rise 10%

The company reported 8% underlying volume growth during the quarter, while sales rose 11% in constant currency terms.

Its consolidated EBITDA margin stood at 19.2%, while net profit remained flat compared to the year-ago period due to what it called “temporary headwinds”.

India business sees strong momentum, led by home care

GCPL’s India operations reported an 8% rise in sales to ₹2,307 crore, with underlying volume growth of 5%.

However, EBITDA for the segment declined 6% to ₹499 crore.

Excluding the soap segment, the India business saw underlying volumes grow in the low teens, according to Managing Director and CEO Sudhir Sitapati.

The home care category grew 16%, fuelled by high single-digit volume growth in household insecticides.

Electric formats delivered double-digit gains, and incense sticks saw a 2.5x jump in volumes.

Air fresheners continued their strong run, with Aer-O growing twofold and Aer Spray posting impressive gains due to a value shift from trade to consumers.

Fabric care also maintained its momentum, notching up double-digit volume growth for the sixth straight quarter.

Personal care, however, grew just 1% as the personal wash segment faced pressures from pricing adjustments, lower trade margins, and grammage cuts. Hair colour and deodorants performed better, both delivering double-digit and mid-teens growth respectively.

Indonesia falters, but Africa, LATAM outperform

GCPL’s international performance was mixed. Sales in Indonesia declined 4% year-on-year due to macroeconomic headwinds and competitive pricing pressures.

Volume growth was flat and EBITDA dropped 13%.

Despite these challenges, the company retained growth in hair colour and baby care, with market share gains in both categories.

In contrast, Africa, USA, and Middle East operations posted a 30% sales rise in INR terms and 29% in constant currency.

The launch of Aer Pocket across several African markets received a strong consumer response, while the hair care portfolio sustained double-digit growth.

Latin America and other regions reported an 18% sales increase in INR terms and 29% in constant currency, underpinned by solid volume performance.

Outlook: Margin recovery expected in H2

GCPL reaffirmed its full-year guidance of mid-to-high single-digit volume growth in the standalone business, high single-digit consolidated revenue growth in INR, and double-digit growth in consolidated EBITDA.

The company said it remains on track to realise ~200 basis points of savings in media investments through automation, planning efficiencies, and renegotiated agency contracts.

While elevated palm oil prices affected margins in Q1, the company expects the impact to ease in the second half of the fiscal.

“Standalone EBITDA margin in H1FY26 is likely to be below our normative range but is expected to improve in the second half,” Sitapati said. “We are on track in our journey to reduce wasted cost and are deploying this to drive profitable and sustainable volume growth.”