Q1 2026 Godrej Consumer Products Ltd Earnings Call Transcript
Key Points
- Godrej Consumer Products Ltd (BOM:532424) reported a consolidated revenue growth of 10% in INR terms, with an 8% underlying volume growth.
- The company's Africa business showed strong performance with sales growing at 30% and EBITDA at 15%.
- The household insecticide segment experienced high single-digit volume growth, with electrics growing in double digits and gaining market share.
- The company successfully launched new products such as air fresheners and antiperspirants, which are seeing good consumer traction and repeat sales.
- Godrej Consumer Products Ltd (BOM:532424) is on track to deliver 150 to 200 bps of savings in A&P investments, doubling A&P spend and tripling working media over the last three years.
- The international business faced challenges due to macro headwinds and competitive pressures, particularly in Indonesia.
- The soaps segment experienced a decline in volume due to volume price rebalancing and a poor season in May, especially in North India.
- Standalone EBITDA margins in H1 FY26 are likely to be below the normative range, with improvement expected only in the second half.
- The Indonesia business was impacted by macroeconomic factors and competitive pricing pressures, which are expected to be transitory.
- There was a margin compression in the Africa business due to increased investments in new product launches like air pocket.
Ladies and gentlemen, good day, and welcome to the Godrej Consumer Products Q1 FY26 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Vishal Kedia. Thank you, and over to you, sir.
Good evening to all present. Welcome to the Q1 conference call for Godrej Consumer Products Limited. We have with us Mr. Sudhir Sitapati and Mr. Aasif Malbari. We'll start with opening remarks from Mr. Sudhir Sitapati, following which we will go into Q&A. I now hand over to Mr. Sudhir Sitapati, for his opening remarks.
Good evening to all. Q1 FY26 has been a good quarter for GCPL. In particular, our stand-alone ex soaps business has had an excellent performance delivering an underlying volume growth of mid-teens, led by broad-based performance. Our
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