Godrej Consumer Products reports a strong start to FY27 with a 19% increase in revenue, driven by broadening growth across India, Indonesia, and Africa, as the company eyes exceeding its full-year targets amidst input cost pressures and recovering margins.
Godrej Consumer Products said its first quarter of FY27 marked a strong start to the year, with consolidated revenue rising 19% from a year earlier as growth broadened across India, Indonesia and Africa. The company said underlying volume growth reached 9%, putting it on track with its long-running target of sustained double-digit volume expansion and lifting confidence that full-year sales will come in ahead of guidance.
Chief executive Sudhir Sitapati said the business is likely to exceed its original revenue target by a wide margin and could also edge past its double-digit EBITDA growth goal, depending on commodity trends. In comments reported by Business Standard and Livemint, he said the company was seeing firmer demand, easing cost pressure and progress across its so-called speed boats, the faster-growing brands that include Godrej Fab, GK incense sticks and Godrej Air.
India remained the most pressured market in the quarter, with gross margins hit by sharp inflation in LPG, kerosene and other inputs. Sitapati said prices had been raised by about 5% and more increases could follow, but the company is trying to avoid overcorrecting while raw material costs cool. He said margins in India should return to normal levels over the next couple of quarters, though Q2 is still expected to absorb higher-cost inventory before a fuller recovery in the second half.
The company also said its household insecticides business in India gained market share for the first time in nearly a decade, which Sitapati described as a structural improvement rather than a one-off. He linked the gain to stronger performance in incense sticks and to a push against lower-quality illegal products. At the same time, he acknowledged that June was unusually weak because of poor fill rates and very high costs, which dragged the category’s volume growth to the lower end of expectations.
Outside India, the Africa business delivered an especially strong quarter, while Indonesia posted mid-teens revenue growth with double-digit volume gains. Sitapati said Africa’s momentum is being supported by better execution in hair extensions and faster traction in air care, while Indonesia is benefiting from improved trading conditions, a slower base and extra demand from El Niño-related weather patterns. He also highlighted progress in pet care, where the company has committed ₹500 crore, and said the Mustak acquisition has grown 70% to 80% from its run-rate since purchase and has been earnings accretive from day one.
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