Godrej Consumer Q1 Update | Double-digit revenue growth, weaker EBITDA margin

FMCG maker Godrej Consumer Products Ltd on Friday (July 4) said it expects to report double-digit consolidated revenue growth in the first quarter of FY26, driven by high single-digit underlying volume growth (UVG).

The standalone business is likely to see high single-digit value growth, supported by mid-single-digit UVG. Volume growth is said to be strongly competitive, also showing sequential improvement.

The home care segment is expected to post double-digit growth in both value and volumes, backed by broad-based momentum. In contrast, personal care is likely to register low single-digit value growth, with performance held back by soaps. Excluding soaps, which are undergoing price-volume rebalancing due to commodity volatility, the standalone portfolio is expected to deliver a strong quarter with double-digit UVG.

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The company reiterated its full-year FY26 guidance from its May 2025 investor meeting, projecting mid to high single-digit UVG for the standalone business, high single-digit consolidated revenue growth in rupee terms, and double-digit consolidated EBITDA growth.

The standalone EBITDA margin for Q1FY26 is expected to be below the company’s normative range, although an improvement is expected in subsequent quarters. Moderation in palm oil prices began at the end of June, but the benefits are likely to be reflected only in the second half of the year.

Internationally, the Indonesian business is facing heavy pricing pressure across major categories, which is expected to lead to a flattish UVG. Meanwhile, the GAUM (Godrej Africa, USA, and Middle East) business is expected to deliver strong double-digit value and volume growth for the second straight quarter, with continued healthy profit growth.

Also Read: Godrej Consumer Products shares in focus after Q4 business update states it is ‘largely on track’

Shares of Godrej Consumer Products Limited ended at ₹1,198.80, up by ₹28, or 2.39%, on the BSE.