Shares of Godrej Consumer Products were trading nearly 2% higher in early trade, with the stock around Rs 1,273.90 on the NSE, after the company indicated a strong operational performance for the quarter, supported by improving demand conditions in India and steady momentum across key businesses.
The company said demand in India strengthened progressively during the quarter and expressed confidence in a gradual recovery in consumption over the coming quarters. Management cited easing inflation and improved affordability following lower GST rates as key factors supporting demand revival.
Against this backdrop, the standalone business is expected to deliver double-digit revenue growth, supported by close to double-digit underlying volume growth on a favourable base. The performance continues to be led by the Home Care segment, where the company expects double-digit value growth, driven by sustained consumer demand and strong in-market execution.
The Personal Care segment is expected to record mid-single-digit value growth, led by a marked recovery in the soaps category. Management noted that this improvement reflects better category fundamentals along with sharper execution, resulting in stronger competitive performance.
On profitability, the company expects standalone EBITDA margins to revert to the normative range, supported by favourable input costs, disciplined cost control, calibrated pricing actions and improved operating leverage. In Indonesia, competitive pricing pressures persisted during the quarter, though the company indicated early signs of stabilisation and expects improvement in revenue and profitability from FY27 onwards.
What brokerages said
Nomura maintained a Buy rating on Godrej Consumer Products with a target price of Rs 1,520. The brokerage expects consolidated revenue growth to remain close to double digits, led by double-digit volume growth in India, both above expectations. Nomura also highlighted meaningful margin improvement and expects Q3 FY26 consolidated EBITDA margins of 20.7%, driving 12.8% year-on-year EBITDA growth.
Nuvama reiterated its Buy call and raised its outlook following the Q3 business update, setting a target price of Rs 1,350. The brokerage now expects revenue and EBITDA to grow 10% and 21% YoY, respectively, with volume growth seen at 10% YoY. Nuvama expects Home Care to grow in double digits, while Personal Care growth is likely to be in the mid-single digits, led by a recovery in soaps. Standalone EBITDA margins are seen returning to normalised levels of 24–26%.
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