InfoSAWIT, JAKARTA – Godrej Consumer Products Ltd (GCPL) expects consolidated revenue to grow at a high-teens rate in the second quarter of fiscal year 2026/2027, ended September 2026, supported by resilient demand across markets despite renewed inflationary pressure on key raw materials, including palm oil.
In its quarterly business update on Monday, October 5, the company projected high-teens consolidated revenue growth, alongside high-single-digit underlying volume growth and double-digit growth in earnings before interest, taxes, depreciation and amortisation (EBITDA).
For its standalone business, which primarily covers the domestic Indian market, GCPL forecast revenue growth in the teens and high-single-digit underlying volume growth. The outlook takes into account an estimated 100–150 basis-point impact from trade inventory correction.
According to The Economic Times, as reported by InfoSAWIT, GCPL attributed its expected performance to healthy demand across its personal care and home care portfolios. The broad-based growth suggests the company is benefiting from several product categories rather than relying on a single business segment.
Indonesia Remains a Key Growth Market
Indonesia is expected to remain an important contributor to GCPL’s international performance. The company, which considers Indonesia its second-largest market after India, projected high-teens revenue growth and high-single-digit volume growth in the country.
GCPL attributed the outlook to improved business execution, sustained market-share momentum and healthy demand trends across its product categories.
Its Godrej Africa, USA and Middle East (GAUM) business is also expected to deliver strong double-digit revenue and volume growth. Performance in these markets is being supported by market-development initiatives in key categories and an expanded portfolio of fast-moving consumer goods (FMCG).
The company said it remained on track to meet its full-year performance guidance and was optimistic about exceeding its targets on several indicators, supported by growth across multiple business segments.
Palm Oil Inflation Puts Pressure on Costs
Despite the positive revenue outlook, rising input costs remain a challenge. GCPL said inflationary pressure on raw materials intensified during the second quarter after some commodities had shown signs of easing toward the end of the first quarter of fiscal year 2026/2027.
Cost pressures have returned across several major input categories, including crude oil derivatives, palm oil and other commodity-based materials.
To manage the impact, the company is combining measured price adjustments with cost-saving initiatives, supply-chain efficiencies and disciplined spending.
GCPL said its experience in navigating previous, more severe commodity-price cycles would help it manage the current cost environment without compromising its growth agenda.
For the palm oil industry, the company’s outlook illustrates how changes in vegetable oil prices can influence the cost structures of consumer goods manufacturers. Palm oil is an important input for various personal care and household products, making price movements relevant to manufacturers’ margins and pricing strategies.
At the same time, GCPL’s growth projections indicate that resilient consumer demand, stronger execution and operational efficiency remain central to sustaining business performance amid renewed inflationary pressure. (T2)
