Financial Performance Overview

Consolidated Q1 FY2027 Results:

  • Sales grew by 19% year-on-year
  • Underlying volume growth of 9%
  • EBITDA grew by 14% year-on-year (including forex)
  • EBITDA margin at 19.0%
  • Net profit grew by 11% year-on-year

Regional Performance Breakdown:

  • Standalone India business: Sales grew 12% YoY with underlying volume growth of 7%
  • Indonesia: Sales grew 15% YoY
  • Africa, USA, and Middle East: Sales grew 47% YoY (25% in constant currency terms)

Management Commentary

Sudhir Sitapati, Managing Director and CEO, commented that Q1 FY27 represented a strong start to the year with broad-based revenue and profit growth across all businesses. The operating environment remained challenging with elevated input costs, particularly during the early part of the quarter, and geopolitical developments contributing to significant volatility in crude and other commodities.

Despite this backdrop, underlying volume-led momentum strengthened sequentially, reaching 9% consolidated underlying volume growth. The company's "speed boats" - Godrej Fab, GK Incense Sticks and Godrej Aer globally - continue to grow strongly and are becoming increasingly meaningful contributors.

New entries in Toilet cleaners, Body wash, and Face wash are showing strong progress and meeting stated milestones. The Africa business (GAUM) delivered an outstanding quarter with structural EBITDA improvement from high single digit to consistent mid-teens level.

Business Update - Standalone India

Financial Performance:

  • Q1 FY2027 sales grew by 12% to ₹2,535 crore
  • Underlying volume growth of 7%
  • Q1 FY2027 EBITDA grew by 10% to ₹548 crore

Category Performance:

Home Care (grew 12%):

  • Household Insecticides performance improving driven by actions
  • Electrics continues to deliver as per plan with new "GK 6-min RNF" campaign gaining popularity
  • Incense sticks continue to scale up strongly and is the largest branded stick in the category
  • Non-mosquito portfolio continues to deliver, led by HIT ARG double-digit growth
  • Air Fresheners continue to witness strong consumer traction and strengthen market leadership
  • Aer Spray 99 continues to reset category landscape and grow significantly ahead of peers
  • Godrej Fab continues to deliver strong double-digit growth and increase market share
  • Godrej Spic Toilet Cleaner scaled up to pan-India in April post robust results in Tamil Nadu
  • Launching Godrej Rizz entry into Liquid Dishwash (₹3,000 crore category growing at double-digit rate)

Personal Care (grew 11%):

  • Skin cleansing continues to upgrade to premium formats and outperform in the market
  • Strong recovery in soaps underlying volume growth leading to outperformance
  • Magic Handwash continues to scale and enjoy market leadership in handwash segment
  • Cinthol Bodywash witnessed highest ever offtake in Q1
  • Muuchstac performance and scale up in line with business plan
  • Hair Colour delivered strong growth and gained market share across crème and shampoo formats
  • Perfumes & Deodorants actions as per plan with market restructuring actions underway
  • KS99 continues to deliver strong performance and has been scaled up pan-India

Business Update - Indonesia

  • Business on path to recovery with underlying volume and profit growth
  • Delivered strong 10% underlying volume growth and 15% sales growth
  • Growth led by Shampoo HC and Household Insecticides
  • Stella LV relaunch witnessed robust consumer traction and sell-outs

Business Update - Africa, USA and Middle East

  • Strong FMCG scale up leading to high-teens underlying volume growth
  • Underlying sales growth ~47% (25% in constant currency terms)
  • Underlying volume growth at 17%
  • EBITDA growth at 42%
  • FMCG business led growth driven by doubling media spends
  • Continued strong performance in Hair Fashion across key markets
  • Successfully scaled Air fresheners across markets
  • Good Knight Incense Sticks piloted in Nigeria with strong early consumer feedback

New Product Launch

The company announced the launch of 'Godrej Rizz', its entry into Liquid Dishwash. Liquid dishwash is described as a ₹2,500-3,000 crore category growing in strong double digits as consumers upgrade from bars to liquids. The category has household penetration in the mid-teens. The product is being launched in select states.

Outlook

The company remains firmly on track to deliver its guidance for the full year with confidence to exceed the same in select areas. With revenue growth tracking ahead of original expectations and input costs beginning to ease, they enter the remainder of FY27 with increased confidence. The company remains confident in the resilience of its portfolio, the strength of its brands, and its ability to deliver sustained, profitable growth going forward.