Godrej Consumer's Growth Bet: Brokerages Like The Portfolio Pivot, But Risks Remain— Should You Buy?

Godrej Consumer Product Ltd. is in focus today after the company's net profit for the fourth quarter of the FY26 rose 9.7% year-on-year, according to an exchange filing last week. Today, May 12, is the record date set to determine the eligibility of the shareholders. Godrej Consumer had declared an interim dividend of Rs 5 per share. The company also informed that the dividend will be paid or before Thursday, June 4, 2026. 

Revenue from operations rose 11% to Rs 3,900 crore from Rs 3,514 crore. Earnings before interest, taxes, depreciation, and amortisation grew 10.8% to Rs 841 crore from  Rs 759 crore; while margin stayed flat at 21.6%. 

Brokerages remained largely positive on the FMCG major, with Jefferies and Citi maintaining their 'Buy' ratings, with target prices set at Rs 1,400 and Rs 1,300 respectively. Investec maintained its Hold call, and cut the target price to Rs 1,130 from Rs 1,317. Morgan Stanley also retained its Equal-weight rating, cutting its target to Rs 1,109 from Rs 1,159.

ALSO READ: Godrej Consumer Q4 Results: Net Profit Sees 10% Uptick, Dividend Declared

Investec on Godrej Consumer

• Maintain Hold; Cut TP to Rs 1,130 from Rs 1,317
• Portfolio transformation to drive future growth
• Household insecticides and Africa turnaround remain key focus areas
• Category expansion expected to support next growth leg
• EPS estimates cut due to raw material pressures and weak Indonesia growth

Jefferies on Godrej Consumer

• Maintain Buy with TP of Rs 1,400
• ‘Speedboat' portfolio expected to grow over 30%
• Core business expected to grow at moderate pace
• Combined portfolio could deliver teen India revenue growth till FY30
• Volume growth remains key focus
• Air freshener category emerging as global growth driver
• Simplification strategy improving operating cash flow and Africa margins

MS on Godrej Consumer

• Maintain Equal-weight; Cut TP to Rs 1,109 from Rs 1,159
• Focus remains on portfolio transformation
• FY27 revenue and EBITDA growth expected in double digits
• India business seen delivering high-single digit volume growth
• India revenue growth could improve to teens by FY30
• New segments expected to grow over 30%

Citi on Godrej Consumer

• Maintain Buy with TP of Rs 1,300
• Portfolio transformation expected to drive next growth phase
• Growth visibility improving across geographies
• FY27 outlook calls for high-single digit volume growth and double-digit revenue growth
• Commodity inflation remains a margin risk
• Recent price hikes expected to partly offset cost pressures

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