Godrej Consumer Products expects high teens revenue growth in Q2 FY27

MUMBAI: The monsoon may have played spoilsport, but Godrej Consumer Products is expecting its growth story to stay on track. The FMCG major expects consolidated revenue to rise in the high teens in Q2 FY27, with underlying volume growth in the high single digits and EBITDA growth in double digits, as broad-based momentum across its markets helps counter uneven consumption and rising input costs.

The company’s quarterly update, based on internal unaudited management reports, points to another strong quarter despite a somewhat choppy operating environment. Consumption during the quarter was affected by uneven monsoon conditions amid an intensifying El Niño, while inflation returned across several commodity-linked inputs, putting pressure on costs.

Even so, Godrej Consumer expects to maintain its annual growth trajectory, with India, Indonesia and its GAUM business continuing to provide multiple engines of growth. The company said a detailed performance update will be issued after its board approves the Q2 FY27 financial results.

On a consolidated basis, the company expects revenue growth in the high teens, while underlying volume growth is expected to land in the high single digits. EBITDA is also expected to grow in double digits, suggesting that the company is looking to keep profitability moving ahead even as raw-material costs become less friendly.

India keeps the volume engine running

The standalone business is expected to deliver revenue growth in the teens, alongside high-single-digit underlying volume growth. Godrej Consumer expects both its Personal Care and Home Care portfolios to contribute to this performance, pointing to broad-based growth rather than reliance on a single category.

However, the quarter has not been entirely smooth sailing. The company estimates that trade inventory correction could weigh on performance by approximately 100 to 150 basis points, making the underlying growth numbers more significant as it navigates channel-level adjustments.

Despite this drag, the company expects healthy growth across its India portfolio. Its strategy remains centred on driving consumption through stronger distribution, innovation and category development, while balancing near-term market conditions with longer-term brand building.

Indonesia builds on its recovery

Indonesia is also expected to keep its recovery momentum intact, with Godrej Consumer forecasting high-teens revenue growth and high-single-digit volume growth for Q2 FY27.

The company said the business is building on the recovery seen over recent quarters, helped by improved execution, sustained market share momentum and healthy category trends. Indonesia remains one of Godrej Consumer’s key international markets, with the company holding leading positions across several categories.

The market’s performance therefore provides another leg to the company’s international growth strategy, particularly as India contends with uneven consumption and channel corrections.

GAUM delivers another strong showing

The GAUM business, covering Godrej Africa, USA and Middle East, is expected to deliver another outstanding quarter, with robust double-digit growth in both revenue and volumes.

Godrej Consumer attributed this performance to its strategy of strengthening core categories while transforming the portfolio by scaling FMCG categories. The company said its international growth platforms are continuing to contribute meaningfully to the overall business, giving the portfolio additional momentum beyond India and Indonesia.

The performance also underlines the company’s broader focus on building businesses across emerging markets, with Godrej Consumer saying that its products reach 1.4 billion consumers globally. Its portfolio spans household insecticides, hair care, hair colour, soaps, air fresheners and wet tissues.

Commodity costs turn up the heat

While volumes remain encouraging, the cost side of the equation is becoming harder to ignore. Input cost pressures intensified during Q2, with renewed inflation across several key raw-material categories.

Godrej Consumer specifically highlighted crude-linked derivatives, palm oils and other commodity inputs as areas where inflationary pressure increased during the quarter. For an FMCG company operating across multiple everyday categories, such movements can quickly feed into margins if not managed through pricing and efficiency measures.

The company said it is responding through a combination of calibrated pricing actions, cost-saving initiatives, supply-chain efficiencies and disciplined cost management. It remains confident that these measures will help it navigate the current commodity cycle without compromising its broader growth agenda.

Volume remains the main plot

Rather than chasing growth purely through pricing, Godrej Consumer said it continues to prioritise volume-led growth. The focus is on protecting the long-term health of its brands while continuing to invest in innovation, distribution and category development.

The company remains on track to deliver its full-year guidance and expects to exceed it in select areas. That confidence is being supported by broad-based performance across its businesses, rather than a single market or portfolio acting as the sole growth driver.

Consumer demand has shown resilience across its markets, while the company’s growth platforms continue to gain traction. The combination gives Godrej Consumer room to absorb some of the near-term pressure from commodity inflation and uneven consumption without stepping away from its medium-term growth ambitions.

For Q2 FY27, therefore, the picture is one of growth with a little more grit. High-teens revenue growth, high-single-digit underlying volumes and double-digit EBITDA growth are expected to keep the FMCG major on its annual trajectory, even as monsoon uncertainty, El Niño and commodity inflation make the operating environment more demanding.

The company expects volume growth, portfolio momentum and execution across India and its international businesses to offset higher input costs and uneven consumption conditions, keeping the focus firmly on sustained and profitable growth.