FMCG major Godrej Consumer Products Ltd (GCPL) expects double-digit sales growth and high single-digit underlying volume growth in Q4 FY26, in line with its previous guidance.
In a regulatory filing on Monday, post-market hours, the company said demand conditions and consumer sentiment remained steady in the domestic FMCG sector during Q4 FY26, with trade channels normalising following the GST transition and food inflation easing.
The company added that growth has been broad-based, with all its key categories performing well. It expects standalone EBITDA margins to remain within its normative range, supported by meaningful cost savings in Q4.
At the consolidated level, GCPL expects to deliver close to double-digit revenue growth, consistent with the sequential improvement seen through the year, with EBITDA growth broadly in line with revenue.
Policy tailwinds, including personal income tax relief and GST rationalisation, position the industry well to offset the impact of crude-led inflation as it enters FY27.
On the international front, the company said its Indonesia business continues to show signs of stabilisation, with the peak of competitive intensity now behind it. Underlying volume growth is expected to be in the mid-single digits in Q4, with sustained market share gains across categories, according to the exchange filing.
Similarly, it said the GAUM (Godrej Africa, USA, and Middle East) business continues to deliver strong performance, with double-digit sales growth and high single-digit volume growth.
Amid rising input costs, the company said it has taken pre-emptive measures to mitigate the impact. “Our procurement strategy draws from multiple geographies, reducing concentration risk on stock availability. Importantly, strong brand positioning and large savings projects give us adequate headroom to calibrate trade and other expenses and adjust consumer prices in line with commodity costs,” the company said in its filing.
With Brent crude at $100–110 per barrel and palm oil at 4,500–4,800 MYR, the company expects a cost impact of 6–9% but said it can offset most of these increases through pricing actions, cost savings, operating leverage, and prudent media optimisation.
However, even if costs remain at these levels, the company said it expects to stay broadly in line with its original bottom-line plans for FY27 while stepping up revenue growth.
Godrej Consumer Products share price trend
The company’s shares have been under severe pressure, declining 19% in under five weeks amid rising crude oil prices, erasing its entire CY25 gain of 12%.
Domestic brokerage firm Axis Securities said the FMCG sector is facing a multi-pronged cost shock—not directly from crude oil as a fuel, but as a raw material embedded across the value chain.
The stock has been struggling to regain momentum after delivering a 30% return in 2023. Looking further back, it enjoyed a sustained bull run between 2008 and 2023, delivering a massive return of 2,358%.
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