Godrej Consumer Products (GCPL) shares rose 5% to Rs 1,253 on Monday after the company released a positive business update for Q1FY26.The FMCG major said it expects its standalone business to deliver high single-digit value growth, supported by mid-single-digit volume growth (UVG).
The performance reflects improving demand trends and operational momentum, particularly in its Home Care and GAUM (Godrej Africa, USA, and Middle East) businesses.The Home Care segment has maintained a strong, broad-based growth trajectory, with the company projecting double-digit value and volume growth.
While the Personal Care segment saw subdued growth due to pricing pressures in the soaps category, performance excluding soaps remained strong, also registering double-digit UVG.The company reiterated its full-year outlook from the May 2025 Investor Meet, stating it remains on track to achieve:Mid to high single-digit UVG for the Standalone business,High single-digit consolidated INR revenue growth, andDouble-digit consolidated EBITDA growth for FY26.However, GCPL flagged margin pressure in Q1FY26, with Standalone EBITDA margins expected to be below the normative range, though sequential improvement is anticipated in the coming quarters.
The company noted that the benefits of moderating palm oil prices will likely be visible in the second half of the fiscal year.Live EventsIn international markets, the GAUM business is poised to deliver double-digit value and volume growth for the second consecutive quarter, while the Indonesia business continues to face challenges from aggressive pricing competition, which may result in flattish volume growth.At the consolidated level, GCPL expects double-digit INR revenue growth, driven by high single-digit volume growth, signaling broad-based strength across key markets and categories.According to a research report by Nomura, Godrej Consumer Products Q1FY26 business update better than expectations, with double-digit consolidated revenue growth and mid-single-digit volume growth in India.Nomura has reiterated its Buy rating on the stock with a target price of Rs 1,485, noting that GCPL is currently trading at 46.9x its FY27F earnings per share.
The brokerage continues to value GCPL on a Sum-of-the-Parts (SoTP) basis for June FY27, assigning an EV/EBITDA multiple of 40x for the India business and 36x for international operations.
The target price implies a forward P/E of 56x, which remains unchanged.