Godrej Consumer Products Q1 results review: Time to buy or book profit?

Godrej Consumer Products Q1 results review: Brokerages remain divided on GCPL post its Q1; here's what they suggest

Godrej Consumer Products Q1 results review: Godrej Consumer Products (GCPL) shares rose 1.9 per cent on Friday, August 8, 2025, and logged an intra-day high at ₹1,244.5 per share on BSE. The buying on the counter came a day after the company posted Q1 results, after market hours on Thursday. 

 

At 9:19 AM, Godrej Consumer share price was up 1.33 per cent at ₹1,237.25 per share on BSE. In comparison, the Sensex was 0.2 per cent lower at 80,465.76.   READ STOCK MARKET LIVE UPDATE TODAY

Godrej Consumer Products Q1 results recap

In Q1, GCPL reported a marginal decline in consolidated profit after tax (PAT) to ₹452.45 crore, as compared to ₹450.69 crore year-on-year (Y-o-Y). The company’s consolidated revenue from operations in the first quarter stood at ₹3,661.86 crore, as against ₹3,331.58 crore in the year-ago period.

 

 

Total expenses were higher at ₹3,113.14 crore in the quarter, as compared to ₹2,744.36 crore in the same period last fiscal. For the quarter ended June 30, 2025, exceptional item in the consolidated financial results included an amount of ₹19.54 crore related to litigation settlement in Indonesia. 

Godrej Consumer Products dividend details

The board declared an interim dividend at the rate of ₹5 per share of the face value of ₹1 each. The record date for ascertaining the names of the shareholders who will be entitled to receive dividend is Wednesday, August 13, 2025. The dividend will be paid on or before Saturday, September 6, 2025, according to the filing. 

Godrej Consumer Products Q1 results analysis: Brokerage view

Nuvama Institutional Equities | Buy | Target cut to ₹1,450 from ₹1,460

The brokerage cut its FY26E/27 earnings per share (EPS) estimates by 4–6 per cent, given challenges in Indonesia and India soap business. Further, benefits from Palm Fatty Acid Distillate (PFAD) correction and a recovery in Indonesia are likely Q3FY26 onwards, the brokerage noted. 

Motilal Oswal | Buy | Target cut to ₹1,400 from ₹1,450

GCPL faced demand headwinds in its Indian business during the quarter due to grammage reduction in soaps, which impacted margins. However, palm oil prices began to moderate towards the end of June. The benefits of this decline are expected to flow through only in H2FY26, the brokerage noted. The company’s disruptive innovations, introduction of access packs, and expansion into new growth categories are likely to contribute to the growth trajectory. Additionally, savings in media spends of 200 basis points (bps) will also help restore margins. Besides, there has been a consistent effort to fix gaps in profitability/growth for its international business. 

Centrum Capital | Reduce | Target ₹1,240

GCPL’s volume performance has remained healthy over the last few quarters driven by emerging businesses and formulation change in Household Insecticides (HI), the brokerage note. Further, it believes, company will continue to see healthy volumes and market share gains and expects revenue/ PAT compound annual growth rate (CAGR) of 9.7 per cent/14 per cent over FY25-28E.   ALSO READ | Titan Q1: Brokerages bullish on broad-based growth, watchful on margins

Antique Stock Broking | From Hold to Buy | Target raised to ₹1,403 from ₹1,328

In light of the improving performance of emerging categories such as fabric care and air fresheners and strong performance of the new Renofluthrin molecule in HI, the brokerage has upgrade its rating to Buy. However, it believes the high-cost personal care inventory will weigh on profitability in the near term, and thus decreases  FY26/ 27 earnings estimates by 10 per cent/ 5 per cent, respectively. 

Jefferies | Buy | Target hiked to ₹1,450 from ₹1,425

The brokerage believes that the company saw margin pressure, but a positive outlook remains intact, according to reports. It added that India soap business declined mainly due to grammage cuts, while  and others witnessed strong growth. Indonesia business struggled  with price-led competition, which also impacted margins. Africa growth was exceptional but faced margin pressure.