Godrej Consumer slips 5% on Q4; analysts stay bullish, see up to 18% upside

Godrej Consumer Products share price

Shares of FMCG major Godrej Consumer Products fell over 5 per cent to hit an intraday low of ₹1,035 on the National Stock Exchange (NSE) despite the company reporting in-line results for the January-March quarter of fiscal 2025-26 (Q4FY26). 

 

Around 09:40 AM, GCP's stock was trading at ₹1,044.5, down 4.5 per cent from its previous session close of ₹1,094.10. In comparison, the benchmark NSE Nifty50 was quoting at 24,365.60 levels, up by 34.65 points or 0.14 per cent. On a year-to-date basis, the stock has plunged around 10.5 per cent, compared to a 6.8 per cent decline in Nifty50.

 

 

The market capitalisation of Godrej Consumer Products stood at ₹1.06 trillion. Its 52-week high was ₹1,309, and its 52-week low was ₹967.

Godrej Consumer Products Q4 results highlights

In the March 2026 quarter, Godrej Consumer reported a consolidated net profit of ₹451.77 crore, up 9.68 per cent from ₹411.90 crore in the corresponding quarter of the previous fiscal. 

 

Its consolidated revenue from operations jumped 10.99 per cent year-on-year (Y-o-Y) to ₹3,900.44 crore, as compared to ₹3,514.23 crore in the year-ago period. 

 

The company's earnings before interest, tax, depreciation, and amortisation (Ebitda) grew 10 per cent Y-o-Y to ₹841 crore. Ebitda margins came in at 21.7 per cent. 

 

Its home care segment recorded sales growth of 12 per cent Y-o-Y to ₹1,098 crore, and personal care grew 3 per cent to ₹1,096 crore. 

 

For the full FY26, Godrej Consumer's consolidated sales grew 9 per cent Y-o-Y on the back of underlying volume growth of 6 per cent. Africa, USA, and Middle East sales grew 23 per cent Y-o-Y, while Indonesia sales declined 2 per cent from the previous fiscal. 

 

Additionally, the company's board of directors declared an interim dividend of ₹5 per share, a rate of 500 per cent against a face value of ₹1 each for FY26.  

Brokerages on Godrej Consumer Products

JM Financial said the company's Q4 performance was broadly in line with its pre-quarter update. India business growth of around 10 per cent was driven by strong performance in home care and exports, particularly air care, while personal care growth remained muted due to softness in soaps and hair colour categories. International business revenue rose around 15 per cent Y-o-Y, Ebitda Ebitda remained flat due to higher advertising and promotional spends in Africa and one-time costs in Latin America.

 

The brokerage expects India revenue growth to improve over FY26, supported by better execution, market share gains, and mid-to-high single-digit price hikes across household insecticides, detergents, and soaps. It also noted that the outlook for Indonesia has stabilised, while GAUM is likely to continue delivering double-digit growth.

 

Analysts at JM Financial expect the near-term margins to remain under pressure, but pricing actions and cost-saving measures should help keep Ebitda margins within the company’s guided range. 

 

The brokerage has cut FY27 EPS estimates by 4 per cent due to input cost pressures, higher depreciation, and lower other income. However, given the improving revenue outlook and broader rerating in the FMCG sector, the brokerage raised its target price to ₹1,250 from ₹1,150. It has maintained an ‘Add’ rating on the stock.

 

Sharing similar views, Motilal Oswal Financial Services (MOFSL) said the company is expanding its total addressable market (TAM) by entering faster-growing categories such as men’s face wash and toilet cleaners, while continuing to strengthen its core portfolio. It noted that the company has been consistently working to improve profitability and growth across its international business operations.

 

Citing GCPL’s growth-focused strategy, MOFSL remains positive on the stock. The brokerage has maintained its ‘Buy’ rating with a target price of ₹1,300, based on 45x March 2028 estimated earnings per share (EPS).

 

SBI Securities also said the performance has been broad-based with high single-digit volume growth in India and continued expansion in international markets despite significant macroeconomic headwinds.  

 

"Although the margin outlook given for the next two quarters is on the cautious side, overall, the management remains confident in delivering sustained profitable growth in FY27, supported by a strengthening innovation pipeline and consistent market execution. At CMP of ₹1,095, the stock trades at FY27E/FY28E Bloomberg consensus PE of 44.1x/38.4x, respectively. The medium-term fair value of the stock is expected at ₹1,240," the brokerage said.    Check: Top Gainers Today | Top Losers Today  ===================  Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.)