FMCG player Godrej Consumer Products Ltd (GCPL) shares rallied five percent in early trade on Monday, July 7, following its business update for the quarter.
In an exchange filing, the firm said, "We expect performance to improve sequentially in FY26. We believe for FY26, we are on track to deliver mid-high-single digit UVG for standalone business, high-single digit consolidated INR revenue growth and double-digit consolidated EBITDA growth for the full year."
However, standalone EBITDA margin in Q1FY26 is likely to be below GCPL's normal range but is expected to improve. While palm oil prices have started moderating towards the end of June, benefits of this moderation will only be realized in H2FY26.
"Our Standalone business is likely to deliver high-single digit value growth on the back of mid-single digit UVG. Volume growth has been strongly competitive and is sequentially improving. At a Consolidated level, we expect double-digit INR revenue growth on the back of high-single digit UVG," added the firm.
International brokerage HSBC has maintained a 'buy' rating on Godrej Consumer with a target price of Rs 1,420 per share. It expects margins to improve in the second half of FY26 and has made no changes to its guidance.
Nuvama Institutional Equities said, "The stock should do well in the near term. There’s a beat on India volumes; outlook is strong. FMCG companies (ex-summer categories) are surprising positively,
indicating the worst of slowdown is behind and a gradual recovery ahead."
On the flip side, Hong Kong-based CLSA has given an 'underperform rating with a target of Rs 1,062 per share. It observed that the Q1 update was slightly below its forecast of 10 percent standalone growth. CLSA added that the investor expectations of mid-teen value growth for FY26 may be too optimistic.
At 9.20 a.m., shares of the firm were quoting Rs 1,250.8, higher by 4.9 percent on the NSE.
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