shares declined 0.61 per cent to ₹1,246.40 by mid-afternoon on Wednesday, despite brokerages upgrading their estimates following the company’s encouraging quarterly business update.
The stock opened higher at ₹1,273.90 but failed to sustain gains, trading in a range of ₹1,237-1,273.90 with 10.42 lakh shares changing hands.
The consumer goods major released its Q3 FY26 business update on Monday, indicating double-digit standalone revenue growth driven by nearly double-digit underlying volume growth. The performance exceeded initial brokerage projections, prompting analysts to revise their forecasts upward.
Nuvama upgraded its estimates substantially, now expecting revenue and EBITDA to grow 10 per cent and 21 per cent year-on-year respectively, compared to earlier projections of 8 per cent and 18 per cent.
The brokerage raised its volume growth estimate to 10 per cent from 8 per cent, maintaining a ‘Buy’ rating with a target price of ₹1,350.
Home care is expected to deliver double-digit growth around 10 per cent, while personal care should grow in mid-single digits at approximately 5 per cent, aided by a recovery in the soaps category.
Nomura also retained its ‘Buy’ rating with a target price of ₹1,520, noting consolidated revenue growth close to double digits exceeded expectations.
The brokerage forecasts consolidated margins of 20.7 per cent for the quarter, driving 12.8 per cent year-on-year EBITDA growth. Standalone EBITDA margins are expected to return to normalised levels of 24-26 per cent, supported by favourable input costs and improved operating leverage.
The company cited strengthening demand conditions in India during the quarter, expressing confidence in gradual consumption improvement driven by falling inflation and lower GST rates.
However, continues facing competitive pricing pressures, though management sees early stabilisation signs. The GAUM cluster (Africa, USA, Middle East) maintained strong performance across revenue and profitability metrics.
SBI Securities maintained a neutral short-term stance despite acknowledging the improving consumption trajectory and consolidated revenue approaching double-digit growth.