Citi has maintained a ‘Buy’ rating on Godrej Consumer Products Ltd (GCPL) with a target price of ₹1,400, implying a potential upside of nearly 15% from the current market price of ₹1,222. The brokerage highlighted that the company delivered a mixed performance in the first quarter of FY26.
GCPL’s consolidated revenue grew 10% year-on-year, in line with expectations. However, profitability fell short as EBITDA declined 4% and PAT remained flat compared to the previous year. In India, the business reported 8% revenue growth, led by a 5% increase in underlying volume growth (UVG).
Citi expressed confidence in the company’s growth segments, especially in India. It noted positive performance in household insecticides, which posted high-single-digit revenue growth, and in electric products, which recorded double-digit gains along with market share expansion.
Despite the topline strength, Citi has trimmed its FY26–28 earnings estimates by 6% due to revised assumptions on India margins. The firm cited lower-than-expected profitability as a key concern but remained optimistic about the company’s long-term prospects.
Disclaimer: The views and recommendations expressed in this article are those of the brokerage firm, Citi, as reported. This does not constitute a recommendation by this publication. Investors are advised to consult with a certified financial advisor before making any investment decisions.
