Godrej Consumer’s Q2 revenue rises 19% as pricing hikes offset cost pressures
MUMBAI: Godrej Consumer Products Ltd reported a 19% year-on-year increase in revenue for the September quarter of fiscal year 2027 (Q2FY27), as pricing actions and cost savings helped the consumer goods maker navigate rising input costs. The company’s underlying volume growth stood at 8%, signalling continued demand growth alongside price-led gains.
Consolidated revenue from operations rose to ₹4,413.09 crore in the July-September quarter of FY27, while net profit increased 13.8% to ₹522.92 crore.
“FY27 has been a quarter of strong broad-based performance for Godrej Consumer Products Limited, fully aligned with our expectations and strategic priorities,” chief executive officer and managing director Aasif Malabari said during the post-results analyst call on Thursday.
Godrej Consumer Products sells household, personal care and hair care products under brands including Good Knight, HIT, Cinthol, Godrej Expert and Godrej Aer.
Earnings before interest, taxes, depreciation and amortization (Ebitda) rose 12% to ₹820 crore. The Ebitda margin stood at 18.7%.
Godrej Consumer has raised prices sharply in its fabric care business and indicated that further sequential increases are underway. Its fabric care portfolio includes Godrej Fab, Zap and Ezee. The products use linear alkylbenzene sulfonic acid (LABSA), a crude derivative. Brent crude hovered around $113 a barrel on Thursday, having risen 40% year-on-year in the September quarter, after trading at around $70 a barrel in February, before the West Asia war began.
The company has also raised soap prices and reduced grammage, or the quantity of product sold in a pack, to manage input cost pressures.
“Despite a significant portion of our portfolio being price point backed, we have taken stringent pricing actions combined with large cost savings program and media and trade level investment optimization,” Malabari said.
Standalone business reported 13% sales growth, supported by 7% underlying volume growth. This came despite an estimated 150-basis-point impact from trade inventory correction during the quarter, Malabari said.
“While this has been a modest near-term impact in terms of the correction we've done, we believe that maintaining healthy channel levels is important for operational excellence and sales team to remain focused purely on offtake,” he said.
The board declared an interim dividend of ₹5 per equity share, equivalent to 500% of the ₹1 face value, for FY27.
Godrej Consumer shares closed 1.82% higher at ₹837 on the National Stock Exchange on Thursday, outperforming the benchmark Nifty 50, which gained 1.05%.
The home care segment grew 19% from a year earlier, with the company reporting market-share gains across formats despite weak monsoons, which it attributed to an intensifying El Niño. Its incense sticks business continued to scale up and is now the largest branded player in the category, the company said.
The air fresheners business sustained strong double-digit growth and strengthened its category leadership, gaining market share. Fabric care maintained double-digit growth and improved its market position, with Godrej Fab recording strong double-digit volume growth.
In personal care, soaps delivered stable performance despite significant price increases and grammage reductions, albeit against a favourable base. Hair colours gained market share, while perfumes and deodorants posted double-digit growth.
International markets also contributed to growth. Indonesia reported 8% volume growth and 20% sales growth, supported by broad-based gains across categories. Ebitda rose 12% despite liquefied petroleum gas prices more than doubling in the region.
Africa, the US and West Asia recorded 40% sales growth in rupee terms and 23% in constant-currency terms. Ebitda increased 43%.
The results come as Godrej Consumer searches for a new India chief executive. Sudhir Sitapati resigned as managing director and CEO on 11 August, just days after shareholders approved his leadership for another five-year term.
The search for his successor is still underway. Malabari said the company was prioritising the right fit for its culture and business ambitions.
“This is an important and a key hire for us and hence to ensure that we get the right person both in terms of Godrej Values and second in terms of entrepreneurial mindset is what I would kind of call out,” Malabari said.
Neethi Lisa Rojan is a senior correspondent focusing on the consumer goods and retail sector working from Mumbai for Mint since 2026. She has been a journalist for a little over two years with Moneycontrol and The Morning Context. She has covered the consumer and healthcare sectors in earlier roles. She was a double gold medallist during her bachelor’s from Mahatma Gandhi University Kerala and post-graduation from Pondicherry University. With a background in commerce and journalism, she brings a sharp analytical lens to stories on India’s fast-evolving consumer goods and retail sector.<br><br>With an academic background in business administration and a keen eye for financial statement analysis, she bridges the gap between corporate data and compelling narrative journalism. Her reporting is characterized by a focus on how evolving consumer behaviours and regulatory changes impact India's largest mass-market brands. She is a keen learner with diplomas in international business, human rights and journalism. She specialized in business journalism at the Asian College of Journalism, Chennai. When she is not looking into shopping carts, you can find her explaining the latest conspiracy theory.
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