Godrej Consumer Products expects high-teens Q2 FY27 revenue growth

Godrej Consumer Products Ltd expects high-teens consolidated revenue growth for the second quarter of fiscal year 2027. The company also forecasts double-digit growth in earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the same period.

This outlook is based on internal unaudited management reports. It comes despite renewed inflationary pressures across key raw-material categories. The company serves 1.4 billion consumers globally with a portfolio including household insecticides, hair care, hair colour, soaps, air fresheners, and wet tissues.

Volume growth drivers and challenges

The company anticipates high-single-digit underlying volume growth at the consolidated level. Its standalone domestic business is also expected to deliver high-single-digit underlying volume growth. This growth faces headwinds. The standalone enterprise estimates an impact of approximately 100-150 basis points from trade inventory correction.

Consumption during the quarter was affected by uneven monsoon conditions amid intensifying El Niño. Inflationary pressures across commodity-linked inputs also had an impact. The company expects volume growth, portfolio momentum, and continued execution to offset these challenges.

Input cost pressures and management response

Input cost pressures intensified during Q2 FY27. Renewed inflation occurred across several key raw-material categories, including crude-linked derivatives and palm oils. Certain commodities had shown signs of moderation towards the end of the previous quarter, but pressures renewed.

The company responded through calibrated pricing actions, cost-saving initiatives, supply-chain efficiencies, and disciplined cost management. It has successfully handled significantly larger commodity cycles in the past. It remains confident in managing the current inflationary environment without compromising its growth agenda.

Portfolio and market performance

Performance was broad-based. The standalone enterprise, which is mainly the domestic business, is expected to deliver revenue growth in the teens. Its Personal Care and Home Care portfolios showed healthy growth.

International markets provided strong momentum. The table below outlines the expected performance for key international segments.

Indonesia is the company's second-largest market after India. It continues to build on a recovery seen over recent quarters. The GAUM business growth is bolstered by a strategy of developing core categories and transforming its portfolio by scaling fast-moving consumer goods categories.

Godrej Consumer Products will continue to prioritise volume-led growth while protecting brand health. Investments in innovation, distribution, and category development are key. The company expects to maintain its annual growth trajectory supported by this broad-based performance.

A detailed performance update will be released after board approval of Q2 FY27 financial results.