FMCG major Godrej Consumer Products on Friday said it expects to deliver high-teens revenue growth in the June quarter (Q1FY27), despite significant volatility in crude oil prices and other raw material costs.
In its regulatory filing, the company said it expects to deliver high-teens revenue growth in Q1 FY27, ahead of its full-year guidance of double-digit revenue growth, backed by strong high-single-digit underlying volume growth (UVG).
The company said the June quarter witnessed significant volatility in crude oil and other raw material costs, along with sourcing challenges that led to lower fill rates across markets. However, it said the business successfully navigated these headwinds through agile planning, sourcing, and calibrated pricing actions.
The FMCG industry witnessed an acceleration in value growth during the quarter, while the demand environment remained stable despite crude-led input cost inflation.
It added that its consolidated EBITDA is also expected to come in ahead of its double-digit guidance, although margins are likely to be lower due to exceptional cost pressures. Nevertheless, it expects to recover progressively through fiscal 2027 as commodity prices begin to ease.
The standalone business is expected to deliver double-digit revenue growth, supported by high-single-digit volume growth, with broad-based expansion across categories.
In terms of international business, the Indonesia business delivered a meaningful step-up in performance, reporting mid-teens revenue growth, driven by double-digit underlying volume growth. The company said that with competitive pressures now easing and market share gains sustained across categories, it believes the business is back on a profitable growth trajectory.
The company also said its GAUM (Godrej Africa, USA, and Middle East) business delivered another exceptionally strong quarter, registering strong double-digit sales growth, supported by underlying volume growth in the teens.
Diversified sourcing to mitigate El Niño risks
The company said it remains mindful that El Niño conditions could increase weather-related volatility across its key markets, potentially disrupting agricultural output and rural demand.
However, it added that its geographically diversified sourcing network and product portfolio provide meaningful resilience against such risks, and it does not foresee any major impact.
“With revenue growth tracking ahead of our original expectations and input costs beginning to ease, we enter the remainder of FY27 with increased confidence. We remain firmly on track to deliver our guidance for the full year with the strong likelihood to exceed the same in select metrics,” the company said.
The company added that it remains confident in the resilience of its portfolio, the strength of its brands, and its ability to deliver sustained and profitable growth going forward.
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