Godrej Consumer Products Ltd. has bagged largely bullish calls from brokerages after declaring its first quarter results for the financial year 2027 on Friday.
While the company's net profit for the June quarter rose 11.5% year-on-year, margins narrowed by 40 basis points to 19% from 19.4% in the corresponding quarter of the previous financial year. Gross margin declined sharply by 261 bps compared to the year-ago period.
However, the FMCG giant maintained strong performances across its overseas markets in Africa and Indonesia, offsetting part of India's margin strain.
"Q1 EBITDA broadly in line, with strong Africa and Indonesia performance offsetting India margin pressure," stated Macquarie. The brokerage has maintained an outperform rating on the shares with a Target Price of Rs. 1,250, even as it expects the margin hit to trickle down to the second quarter.
Macquarie noted that market share gains in insecticides and improving international momentum remain key positives for the company, whereas near-term India margin pressure and weak home insecticide performance remain key monitorables.
Jefferies has a 'buy' call on Godrej Consumer, with a TP Of Rs 1,400 backed by positive management commentary driven by market share gains in home insecticides.
The brokerage underlined that margin strain in India on account of LPG, kerosene, LAB, etc remains a central near-term risk, but it re-iterated management's expectations to exceed FY27 consolidated revenue and EBITDA guidance. Additionally, the management is targeting 22-26% India margins in the second half of fiscal 2027.
Godrej Consumer Products Limited Q1 (CONS)
- Net profit up 11.5% at Rs 505 crore vs Rs 453 crore YoY
- Revenue up 18.3% at Rs 4,225 crore vs Rs 3,571 crore YoY
- EBITDA up 15.7% at Rs 802 crore vs Rs 693 crore YoY
- EBITDA margin at 19% vs 19.4% YoY
The Board of Directors declared an interim dividend of Rs 5 per Equity Share for the Financial Year 2026-27. The Record Date for ascertaining the names of the Shareholders who will be entitled to receive the said dividend shall be Thursday, August 13, 2026. The dividend will be paid on or before Saturday, September 5, 2026.
ALSO READ: Godrej Consumer Q1 Result: Net Profit Jumps 11%, Revenue Surges; Africa Business Grows 45%
Godrej Consumer Share Price
Shares of Godrej Consumer ended 2.53% lower at Rs 1,050 apiece on the NSE on Friday.
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