Godrej consumer profit rises 14%, weighs calibrated price hikes to offset inflation

The company reported 19% year-on-year revenue growth in the September quarter.

The company has already taken pricing actions but remains below normative margin levels in soaps and detergents, it said. "We will continue to take calibrated pricing actions, significantly in soaps and liquid detergents," he added.

The cost pressures come as Malbari begins reshaping the business following his appointment as MD and CEO in August, after Sudhir Sitapati stepped down. Alongside pricing, the company is relying on cost savings and tighter media and trade spending to protect profitability.

It reiterated its FY27 guidance of high single-digit underlying volume growth in the standalone business and double-digit revenue and Ebitda growth at the consolidated level.

The company reported 19% year-on-year revenue growth in the September quarter, with underlying volume growth of 8%. Net profit rose 14% to ₹523 crore, while Ebitda increased 12%. Standalone sales grew 13%, despite an estimated 150-basis-point impact from trade inventory correction.

Malbari said the company would prioritise absolute earnings growth over margins amid sharp commodity movements. "We would try to maintain growth in Ebitda at a consolidated level, and that is where the focus should be," he said.

Advertising expenditure has also come under scrutiny as the company balances cost pressures with the need to strengthen brands. Standalone advertising spending declined 17% in the September quarter, following a 7% fall in the June quarter.