Godrej Consumer Products share price gained over 4% on Tuesday, April 7, after the company said it was likely to deliver a healthy March quarter (Q4) performance.
According to the FMCG major, the Q4 performance will be aided by strong domestic growth, improving momentum in Indonesia, and continued resilience in international markets, although the company cautioned that a sharp rise in crude-linked input costs could create pressure going into FY27.
The stock jumped as much as 4.2% to its day’s high of ₹1044.45 on BSE. It has been under pressure in recent times. It fell 12% in the last 1 year, 18% in the past 3 months and 8% in the last 1 month.
Q4 Business Update
In its Q4FY26 business update, said demand conditions and consumer sentiment remained steady in the domestic market during the quarter, while trade channels continued to normalise following the GST transition and food inflation eased.
“Policy tailwinds, including personal income tax relief and rationalization do position the industry well to offset the impact of crude-led inflation as we enter FY27,” said the firm.
GCPL also informed that its standalone business was expected to post double-digit underlying sales growth and high-single digit underlying volume growth in Q4FY26, broadly in line with the guidance it had shared earlier. Excluding soaps, the company said volume growth remained in double digits, keeping it among the faster-growing players in the Indian space.
“Against this backdrop, our Standalone business is expected to deliver double-digit underlying sales growth and high-single digit underlying volume growth in Q4 FY26, in line with guidance provided at our last analyst interaction,” the company said.
GCPL added that growth remained broad-based, with all of its future categories performing well. It also said standalone EBITDA margins were expected to stay within its normative range, helped by meaningful cost savings during the quarter.
Moreover, the company informed that its Indonesian business continued to stabilise, with the peak of competitive intensity now behind it. It expects mid-single digit underlying volume growth in Q4FY26, while continuing to gain market share across categories. GCPL also said its GAUM (Godrej Africa, USA and Middle East) business delivered another strong quarter, with double-digit sales growth and high-single digit volume growth, driven by broad-based traction across geographies and categories.
At the consolidated level, GCPL said it expected to report close to double-digit revenue growth, with EBITDA growth broadly in line with revenue.
GCPL sees a 6-9% cost hit if crude stays elevated
GCPL, however, flagged fresh pressure on costs after global events in the latter part of Q4 triggered a sharp uptick in crude oil prices and pushed up derivative input costs. The company said it had already taken pre-emptive steps to reduce the impact through diversified procurement, pricing actions, and cost controls.
“We do expect sustained inflation into the first half of FY27 and will address the same through a combination of pricing actions and cost efficiency programmes–consistent with our established approach to navigating commodity cycles,” GCPL said.
The company said that with at $100-110 per barrel and palm oil at 4,500-4,800 MYR, it expected a 6-9% cost hit. However, it said it should be able to offset most of the increase through pricing, cost savings, operating leverage, and some prudent media optimisation.
“With Brent crude at between $100-110 and palm at between 4500 – 4800 MYR, we expect a cost hit of 6 – 9%,” the company said.
GCPL added that even if commodity costs remained at current levels, it expected to stay broadly in line with its original bottom-line plans for FY27 while stepping up revenue growth. The company said it remained confident in the resilience of its portfolio, the strength of its brands, and its ability to deliver sustained profitable growth going forward.
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