Summary:
Godrej Consumer Products reported 14% year-on-year profit growth and 19% revenue growth in Q2FY27. However, higher raw material costs reduced EBITDA margin by 120 basis points. Shares declined after results, while the company retained its FY27 growth guidance.
Godrej Consumer Products Ltd on Tuesday posted a 13.8% year-on-year increase in consolidated net profit at ₹522.92 crore for the quarter ended September 30, 2026, as against ₹459.34 crore in the year-ago period. Revenue from operations grew 19% YoY to ₹4,413.09 crore, driven by volume growth in domestic & international markets. However, strong sales growth is offset by higher raw material costs affecting operating margins.
Godrej Consumer Q2FY27 Results: Important Financial Highlights
The FMCG firm posted double-digit growth in revenue, EBITDA and net profit in the September quarter. However, growth in profitability was slower than revenue due to inflation of input costs on operating performance.
| Details | Q2FY27 | Q2FY26 | YoY Variation |
| Revenue | ₹4,413 crore | ₹3,708 crore | +19% |
| EBITDA | ₹820 crore | ₹734 crore | +11.7% |
| Net Profit | ₹523 crore | ₹459 crore | +13.8% |
| EBITDA margin | 18.6% | 19.8% | -120 bps |
| Underlying volume growth | 8% | — | — |
Underlying volume growth at the company was 8% across its businesses, showing demand remained strong even as price increases contributed to revenue gains.
What led to the squeeze in Godrej Consumer’s profit margins?
Commodity prices have been a big headwind this quarter with rising prices.
Higher costs for palm oil and other raw materials used in soaps, detergents and personal care products hurt profitability. Revenue was up 19%, but EBITDA only increased 11.7%, resulting in a 120 basis point contraction in operating margin to 18.6%.
Gross margin also declined about 300 basis points YoY. The company increased prices in certain categories to offset inflation, but price hikes were insufficient to completely shield margins.
The difference between the revenue growth and the EBITDA growth reveals that input inflation continued to squeeze earnings even as sales volumes improved.
Home Care and International Business Drive Revenue Growth
Godrej Consumer’s home care business comprising household insecticides, air fresheners and fabric care products recorded revenue of ₹1,329 crore, up 19% YoY.
Personal care revenue grew 8% to ₹1,303 crore and domestic underlying volume growth was 7%.
International operations were also strong. Indonesia grew revenues by 20% and the Africa, USA & Middle East business reported sales growth of 40%.
Domestic performance was helped by demand for household insecticides, fabric care and air fresheners. Household care portfolio grew with the addition of Goodknight, HIT, Godrej Aer and Godrej Fab products.
Why did Godrej Consumer shares drop after Q2 results?
Godrej Consumer shares fell nearly 4% in early trading on October 30, 2026 after the earnings announcement.
The stock was close to its 52-week low of ₹810.10 hit on October 29. Trading volume also surged, with about 23.19 lakh shares traded as compared to the 30-day average of 9.57 lakh shares at 9:30 AM.
The decline came even as revenue and profit rose, but weaker operating margins and rising input costs raised concerns about near-term profitability.
Dividend Announcement & FY27 Outlook
Godrej Consumer declared an interim dividend of ₹5 per share for FY27.
The company also reiterated its full-year guidance for high-single-digit underlying volume growth in its standalone business and double-digit consolidated revenue and EBITDA growth.
Commodity prices, planned price increases, consumer demand and international business performance will still be important to earnings going forward.
Q2FY27 saw healthy demand and sales growth, but the squeeze in margins shows the ongoing impact of inflation on the company’s profitability.
