Godrej Consumer shares slide 4% after Q1 margin falls amid commodity inflation; Rs 5/share dividend declared

Shares of Godrej Consumer Products declined 4.3% to their day’s low of Rs 1,033 on the BSE on Friday after the company reported its June quarter results.

Godrej Consumer reported a 12% year-on-year (YoY) increase in consolidated net profit to Rs 505 crore for the June quarter, compared with Rs 453 crore in the year-ago period.

Revenue from operations rose 18% YoY to Rs 4,225 crore, up from Rs 3,571 crore in the corresponding quarter of the previous financial year, the FMCG major said in a regulatory filing on August 7.


Godrej Consumer Products' EBITDA rose 15.5% YoY to Rs 802 crore in the June quarter, compared with Rs 694.6 crore a year ago. However, EBITDA margin eased to 19% from 19.4% in the corresponding quarter last year.

Along with the earnings announcement, the company's board has declared an interim dividend of Rs 5 per equity share, equivalent to 500% of the face value of Rs 1 per share, for FY27. The record date for determining shareholders eligible for the dividend has been fixed. The payout will be made on or before September 5, 2026 (Saturday).

Godrej Consumer Q1 commentary

“With revenue growth tracking ahead of our original expectations and input costs beginning to ease, we enter the remainder of FY27 with increased confidence. We remain firmly on track to deliver our full-year guidance, with the confidence to exceed it in select areas,” the company said after announcing its first-quarter earnings.

“We remain confident in the resilience of our portfolio, the strength of our brands, and our ability to deliver sustained, profitable growth going forward,” it added.

Godrej Consumer Q1 segment-wise performance

Home Care: Godrej Consumer's Home Care business grew 12% during the quarter, supported by broad-based strength across categories. The Household Insecticides segment continued to improve, with the Electrics portfolio performing in line with expectations and the new "GK 6-min RNF" campaign gaining traction. Incense sticks maintained strong momentum and remained the largest branded offering in the category, while the non-mosquito portfolio delivered double-digit growth led by HIT ARG.

The Air Fresheners business continued to witness strong consumer demand, strengthening its market leadership and gaining share. The Aer Spray 99 range continued to outperform peers and reshape the category. Meanwhile, Godrej Fab sustained its strong double-digit growth trajectory, driving robust performance in the Fabric Care segment and helping the company gain market share. The business remains on track to achieve the annual recurring revenue (ARR) targets outlined at the 2026 investor meet.

Personal Care: The Personal Care segment recorded 11% growth, led by healthy performance across key categories. In skin cleansing, consumers continued to shift towards premium products, while soaps posted a strong recovery in underlying volume growth and outperformed the market. Magic Handwash retained its leadership in the handwash segment, and Cinthol Bodywash recorded its highest-ever quarterly offtake. The Muuchstac brand also continued to scale in line with business plans, with premium liquid formats remaining a key focus.

The Hair Colour business delivered strong growth, gaining market share across both the Crème and Shampoo Hair Colour segments. In Perfumes & Deodorants, the company's strategy remained on track, with the perfume business continuing to post strong growth momentum.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)