GCPL’s September-quarter revenue grows 19 per cent to Rs 4,413 crore, while Ebitda margin falls to 18.6 per cent. The company plans further price hikes in soaps and liquid detergents
Godrej Consumer Products or GCPL reported a 13.9 per cent year-on-year increase in consolidated net profit to Rs 523 crore in the July-September quarter of FY27, while rising commodity prices put pressure on operating margins. Revenue grew 19 per cent to Rs 4,413 crore from Rs 3,708 crore in the corresponding quarter last year, while Ebitda increased 11.7 per cent to Rs 820 crore from Rs 734 crore.
Ebitda margin declined to 18.6 per cent in the second quarter from 19.8 per cent a year earlier. The company said inflation had intensified across crude-linked derivatives, palm oils and other commodity inputs, resulting in one of the highest inflationary impacts in several years. GCPL estimated the impact at approximately high-single-digit levels across its India and Indonesia portfolios.
The company said it had responded to the cost pressures through pricing actions, cost-saving measures and optimisation of media and trade investments. Despite a significant portion of its portfolio comprising price-point packs, GCPL has implemented price increases while keeping its share of voice range-bound and increasing the emphasis on digital investments, which it said offer higher returns on investment.
GCPL plans further calibrated pricing actions, particularly in soaps and liquid detergents, where the cost impact is significant and margins remain below normative levels. The company said continued cost savings and additional pricing measures would help it protect profitability while maintaining investments behind its growth drivers.
Consolidated underlying volume growth stood at 8 per cent during the quarter, while revenue increased 15 per cent in constant-currency terms, according to the company’s investor presentation. The standalone business recorded 13 per cent sales growth, supported by underlying volume growth of 7 per cent. GCPL estimated that trade inventory correction had affected standalone growth by around 150 basis points during the quarter.
Home Care Leads Standalone Growth
The standalone business reported sales of Rs 2,631 crore, with Home Care revenue growing 19 per cent and Personal Care increasing 8 per cent. Within Home Care, air fresheners sustained double-digit growth, while the household insecticides business gained market share across formats despite weak monsoon conditions. Fabric Care brand Godrej Fab maintained its double-digit growth trajectory, although the company flagged a significant impact from commodity inflation and said further sequential pricing actions were underway.
In Personal Care, soaps recorded stable performance despite significant price increases and reductions in product grammage, although the company noted a favourable year-on-year comparison. Cinthol Bodywash continued to scale up, while the hair colour portfolio gained market share across key brands. Perfumes and deodorants delivered double-digit growth, supported by healthy underlying volume growth in deodorants and continued momentum in perfumes and eau de parfums.
GCPL’s international businesses also contributed to consolidated growth. Indonesia recorded 20 per cent sales growth and underlying volume growth of 8 per cent, while Ebitda increased 12 per cent despite liquefied petroleum gas prices more than doubling. The Africa, USA and Middle East business reported 40 per cent sales growth in rupee terms and 23 per cent in constant-currency terms, with underlying volume growth of 16 per cent and Ebitda growth of 43 per cent.
The company retained its FY27 guidance of high-single-digit underlying volume growth for its standalone business and double-digit revenue and Ebitda growth at the consolidated level. GCPL said revenue for the first half of FY27 was ahead of plan, leaving it on track to meet its guidance, with the possibility of exceeding it in select areas. Its board also approved an interim dividend of Rs 5 per share on October 29, 2026.
