INSUBCONTINENT EXCLUSIVE:
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
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
update better than expectations, with double-digit consolidated revenue growth and mid-single-digit volume growth in India.Nomura has
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.
