Godrej Consumer Q1 Update: FMCG Major Expects Strong Quarter With Double-Digit Revenue Growth
The Home Care segment continues to be the standout performer, with broad-based, double-digit value growth and volume gains, Godrej Consumer Products said.
Godrej Consumer Products Ltd., while disclosing its first-quarter business update in an exchange filing, projected double-digit revenue growth in rupee terms on a consolidated level.
The projection of a strong Q1 is backed by high-single digit underlying volume growth or UVG, underscoring the company's improving performance trajectory and strong fundamentals across geographies.
The fast moving consumer goods major has signalled a gradual but steady improvement in volume growth across key segments. The company expects high-single digit value growth in its standalone business, underpinned by mid-single digit underlying volume growth.
The Home Care segment continues to be the standout performer, with broad-based, double-digit value growth and volume gains. This segment remains a key driver for Godrej Consumer Products, reinforcing its competitive position in the market.
On the other hand, the Personal Care segment is expected to post low-single digit value growth, largely due to pricing and demand rebalancing in soaps.
The soaps category is undergoing a price-volume reset, driven by recent commodity volatility, especially in palm oil. However, Godrej Consumer Products noted that excluding soaps, the standalone business is poised for a very strong quarter, with double-digit volume growth in other Personal Care and Home Care categories.
The company reaffirmed its guidance from its May 2025 Investor Meet, projecting a sequential improvement in performance through fiscal 2026. For the full year, Godrej Consumer Products expects mid to high-single digit UVG for the standalone business, high-single digit revenue growth and double-digit consolidated Ebitda growth.
While first quarter Ebitda margins for the standalone business may fall slightly below the normative range, the company anticipates margin recovery in the second half of the fiscal year. This will be supported by the recent moderation in palm oil prices, the impact of which is expected to reflect fully in second half of this fiscal.
Regionally, the Indonesia business is facing intense competitive pricing pressure, leading to an expected flattish volume growth for the quarter. In contrast, the Godrej Africa, USA, and Middle East segment continues its strong momentum, with double-digit value and volume growth anticipated for the second straight quarter. Profitability in Godrej Africa, USA, and Middle East remains robust.
