Godrej Consumer Products Ltd (BOM:532424)

Q1 2027 Godrej Consumer Products Ltd Earnings Call Transcript

Aug 7, 2026 / 10:30 AM GMT

Release Date Price: ₹1049 (-2.92%)

Transcript

Key Points

Positve

Godrej Consumer Products Ltd (BOM:532424) delivered a strong start to FY27 with consolidated revenue growth of 19% year-on-year, driven by broad-based growth across India, Indonesia, and Africa.
The company's strategic objective of achieving consistent double-digit volume growth is progressing, with consolidated underlying volume growth reaching 9% in Q1 FY27, supported by strong performance from speed boats like Godrej Fab, GK Incense Stick, and Godrej Air.
The Africa (GOM) business delivered an outstanding quarter with exceptional FMCG growth, successfully scaling air fresheners and receiving strong consumer feedback on incense stick pilots in Nigeria, alongside a structural improvement in EBITDA to a consistent mid-teens level.
In India, the Household Insecticides (HI) business achieved an important milestone by gaining overall market share in Q1 FY27 for the first time in almost a decade, indicating that the turnaround strategy is beginning to deliver results.
The company is confident in its full-year guidance and expects to exceed it in select areas, particularly revenue growth, due to strong momentum and easing input costs, while also launching new growth initiatives like Godrej Riz in the liquid dishwash category.
The Mustak acquisition is performing strongly, with the business growing by 70-80% since acquisition and being EPS accretive from day one, while also providing valuable capabilities that are being leveraged across other brands.

Negative

The operating environment remained challenging with significant input cost inflation, particularly LPG, kerosene, and Lapsa, which trebled in price during the quarter, impacting India's gross margins by close to 6%.
India's EBITDA margins were under pressure, with the company taking a short-term margin hit due to the inability to fully price for the West Asia crisis, leading to a sharp fall in gross margins for the quarter.
The Household Insecticides (HI) category faced a disastrous June due to poor fill rates and extremely high costs, which negatively impacted India's volume growth, keeping it at the lower end of the expected range at 7%.
The company anticipates continued volatility in commodity prices, with crude and palm being unstable and El Nino potentially impacting demand across a few categories, creating uncertainty for future pricing and margin recovery.
Media spends were cut by 7-8% during the quarter to manage costs, and while media reach was only down 3%, this could potentially underfund new category launches and growth initiatives if commodity costs remain elevated.
The company noted that Q2 will still face margin pressure due to consumption of higher-cost inventory, with a full recovery to normative margins only expected in the second half of the year.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

GOCP.NS - Godrej Consumer Products Ltd
Q1 2027 Godrej Consumer Products Ltd Earnings Call
Aug 07, 2026 / 10:30AM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, good day and welcome to the Godrej Consumer Products Limited Q1 FY27 conference call.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing then 0 on your touchstone phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Vishal Kedia from Godrej Consumer Products.

Thank you and over to you sir.

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Unidentified_2 [2]
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