Godrej Consumer Products Limited Earnings Summary — Q1 FY2027
Godrej Consumer Products Reports 15% Revenue Growth and Declares ₹5 Interim Dividend
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 8.3% sequentially in Q1 FY2027.
- Revenue of ₹4,225 Cr is 15.4% higher year-on-year.
- Revenue has compounded at 10.4% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹505 Cr is 11.5% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 5.8% annualised across the period.
- Operating margin stands at 19.0% in Q1 FY2027.
- Operating margin compressed by 1 bps year-on-year.
- Over the last two years operating margin has contracted by 278 bps.
- PBT margin is 16.0%.
- Expense growth of 15.4% remained below revenue growth of 15.4%.
- Operating profit of ₹801 Cr is 15.4% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 66/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 4,225 | 3,900 | 3,998 | 3,825 | 3,662 | 3,514 | 3,768 | 3,666 | 3,332 | 3,386 |
| Expenses | Improving | 3,424 | 3,059 | 3,118 | 3,092 | 2,967 | 2,755 | 3,012 | 2,907 | 2,607 | 2,630 |
| Operating Profit | Stable | 801 | 841 | 880 | 733 | 695 | 759 | 756 | 760 | 724 | 756 |
| Operating Margin | Stable | 19.0% | 21.6% | 22.0% | 19.2% | 19.0% | 21.6% | 20.1% | 20.7% | 21.7% | 22.3% |
| Other Income | Volatile | 36 | -24 | -35 | 33 | 65 | 42 | 77 | 80 | 57 | -2,312 |
| Interest | Stable | 86 | 90 | 79 | 76 | 86 | 90 | 90 | 83 | 88 | 78 |
| Depreciation | Improving | 75 | 76 | 66 | 66 | 59 | 73 | 62 | 50 | 49 | 50 |
| Profit Before Tax | Improving | 677 | 651 | 700 | 625 | 614 | 639 | 682 | 707 | 644 | -1,684 |
| Tax | Stable | 172 | 200 | 202 | 166 | 161 | 228 | 183 | 215 | 193 | 209 |
| Net Profit | Strong Uptrend | 505 | 452 | 498 | 459 | 452 | 412 | 498 | 491 | 451 | -1,893 |
| Net Margin | Improving | 11.9% | 11.6% | 12.4% | 12.0% | 12.4% | 11.7% | 13.2% | 13.4% | 13.5% | -55.9% |
Key Takeaways
- Consolidated revenue from operations reached ₹4,225.47 crore, a significant increase from ₹3,571.32 crore in the same quarter last year.
- The Board declared an interim dividend of ₹5 per equity share for the financial year 2026-27, representing a 500% payout on face value.
- Africa segment revenue showed robust growth, crossing the ₹1,000 crore mark for the quarter, compared to ₹684 crore in the prior year period.
- Exceptional items for the quarter totaled ₹15.56 crore, primarily driven by litigation costs in the USA (SON LLC) and restructuring costs across India, Indonesia, and Africa.
- Operating margins were impacted by a deliberate doubling of media spend in the Africa/USA/Middle East segment to build a long-term franchise.
- The company adopted a new accounting policy for promotional expenditures, reclassifying them as offsets to revenue rather than operating expenses, following ICAI advisory.
Management Guidance
Management expects Indonesia to see a meaningful step-up in performance as pricing pressure abates. The Africa, USA, and Middle East business is targeted to deliver double-digit revenue and profit growth over the medium term. India business remains positioned for calibrated growth with normative EBITDA margins despite potential short-term pressure from crude oil volatility.
Sentiment Shift
Improving
Revenue growth is accelerating across segments, and the transition of the Africa business toward a conventional FMCG model is yielding high top-line growth despite heavy reinvestment.
Outlook
The company enters FY 2027 with a strengthening innovation pipeline and a focus on category development. While crude oil prices may pressure margins for 3-4 months, management believes this is manageable through pricing actions and improved operating leverage as scale benefits kick in across the portfolio.
From the Annual Report (Key Quotes)
“Q4 FY'26 has been a quarter of strong broad-based performance... fully aligned with our expectations and strategic priorities.”
“Profit growth has been weaker over the last 2 years... driven by significantly stepped-up investments to ignite growth and expand into new categories.”
“Our Africa business now is looking more and more like a conventional FMCG business to us.”
“We are actually extremely pleased that ICA has released this EAC opinion... which will enable better consistency and competitively across all the players.”
Official Quarterly Documents
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This summary is AI-generated from Godrej Consumer Products Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.