Nature of the Event

Regulatory filing pursuant to Regulation 30 read with Para A of Part A of Schedule III of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, containing the transcript of a business update conference call for institutional investors and financial analysts.

Key Quantitative Figures & Guidance

  • FY27 Volume Growth Guidance: High single-digit UVG (Volume Growth) for India (standalone); double-digit UVG on a consolidated basis.
  • Inventory Correction: Plan to correct INR 125-150 crores of trade inventory in India's General Trade (GT) channel over the next three quarters. This represents a reduction of ~1.5-2% in some quarters.
  • R&D Investment: INR 150 crores in capex for a new state-of-the-art R&D facility.
  • Annual Strategic Investment: INR 200 crores per annum in P&L costs for scaling resources in R&D, global GTM, and digital marketing capabilities. This will be phased in over the next 12 months.
  • Pet Care Business: Current Annual Run Rate (ARR) is INR 10 crores. Target to scale to INR 50 crores ARR by end-FY27 and a INR 500 crores business by FY30.
  • Dividend Policy: Committed to paying a minimum of 50% of PAT as dividend. Currently paying 100% and likely to continue unless a large M&A occurs.
  • Capex Cycle: Major capex cycles will be completed in FY27. Post-FY28, capex is expected to reduce to maintenance levels (around depreciation).

Dates of Action

  • Conference Call Date: September 2, 2026
  • Filing Date: September 7, 2026
  • Product Launch (Rizz): Launched in Maharashtra on September 2, 2026 (MRP INR 79).
  • Product Launch (Zap): Digital-only launch scheduled for the days following the call.
  • Product Launch (Hair Lab): First product from G Labs, launched around the time of the call.
  • Inventory Correction: To be executed over the next three quarters (Q2, Q3, Q4 FY27).
  • Strategic Investments: Scaling of INR 200 crore annual investments to be completed within the next 12 months.

Parties Involved

  • Management: Mr. Aasif Malbari (Managing Director and Chief Executive Officer), Mr. Vishal Kedia (Interim Chief Financial Officer).
  • Company Secretary & Compliance Officer: Ms. Tejal Jariwala (signed the filing).
  • Analysts: Mihir Shah, Aditya Soman (CLSA), Avi Mehta (Macquarie).

Purpose & Stated Rationale

The call was held to provide a business update following the appointment of the new MD & CEO three weeks prior. The purpose was to outline the management's diagnosis of past performance, detail the refined strategy for achieving sustained outperformance, and reaffirm financial guidance for the current year (FY27).

Financial & Operational Impact (as explicitly disclosed)

  • Short-Term Profit Pressure (India): The planned INR 125-150 crore inventory correction in India will put "a little bit of an extra pressure" and "a little bit of an optics of the pressure" on India's profitability in FY27, though the overall consolidated guidance will be maintained.
  • Medium-Term Investment Impact: The INR 200 crore annual strategic investment will pressure short-to-medium term margins but is deemed essential for long-term value creation. The payback period is estimated at 2-3 years.
  • Portfolio Transformation Impact: New category entries (e.g., Home Care liquids) will be EBITDA-accretive investments for "a few more years" but are expected to have healthy unit economics at scale.
  • Capital Structure Impact: No direct impact on capital structure disclosed. The company's balance sheet is stated to be strong, supporting the investment plans and dividend policy.

Forward-Looking Guidance & Management Commentary

  • Ambition: The ultimate goal is to become a "sustained outperformer" by delivering double-digit volume growth (UVG) and double-digit profit growth, leading to teens revenue growth. The question is "when and not if."
  • Strategy Pillars:

1. Win the Core: Reignite innovation and execution rigor in core categories (Household Insecticides, Air Care, Skin Cleansing, Hair Colour).

2. Portfolio Transformation: Decisively build new large categories in India (e.g., Home Care liquids) and scale winning mixes globally through the "tunnel to the world."

3. G Labs: Create an entrepreneurial "company within a company" to disruptively incubate future growth products (e.g., Godrej Hair Lab).

4. Build Capabilities: Significant investments in R&D, global GTM, and digital marketing.

5. Foster an AND Culture: Emphasize balancing values & valuation, strategy & execution, today & tomorrow, UVG & profit, core & new, India & international.

  • Category-Specific Plans:
  • HI: Drive share gains in burning formats; premiumize through innovation and better execution on LV formats; expand into non-mosquito pests.
  • Skin Cleansing: Recalibrate product-price-market fitment and micro-market execution to return to historical share gains; expand into the broader skin cleansing space (handwash, facewash, bodywash).
  • Hair Colour: Continue upgrading users from traditional to modern formats; enter premium segment with Godrej Hair Lab; grow professional business.
  • Hair Fashion: Structural changes completed; expect sustained profitable growth in Africa.
  • Perfumes & Deos: Remain excited about the category potential; focus on fixing execution and integration of acquired brands (Playgard, AXE).
  • M&A Strategy: Open to acquisitions, primarily in India, if they are strategic, have high conviction, offer a multiplier effect (3-4x scale-up potential), and achieve EPS breakeven soon.