Godrej Consumer Shares Fall Nearly 4% As Q2 Margins Shrink Despite Volume Growth

Godrej Consumer Products shares fell nearly 4% on Friday after its September-quarter results showed pressure on profitability despite healthy sales growth. The stock dropped to an intraday low of Rs 777.20 before recovering some losses, with trading volumes running 2.42 times the 30-day average. Revenue rose 19% year on year to Rs 4,413 crore, while EBITDA increased 11.7% to Rs 820 crore. However, EBITDA margin contracted to 18.6% from 19.8%, and gross margin fell 300 basis points. Jefferies cut its target price, citing higher input costs, while HSBC flagged concerns over profitability and management changes.