Godrej Consumer shares jump 6% despite decline in Q2 net profit: analysts expect stronger H2FY26

Godrej Consumer share price

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26 Aug, 2025 12:21

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The shares of Godrej Consumer Products dropped nearly 6 percent on November 3 after the company released its results for the second quarter of the financial year 2026. This comes as brokerages issued bullish calls for the stock, anticipating stronger performance in the second half of the ongoing financial year, following the GST rate cuts.

The shares of the company were trading at Rs 1,184.80 apiece in the morning.

Godrej Consumer Q2 Results:

Godrej Consumer Products on Friday reported a consolidated net profit of Rs 459 crore for Q2 FY26. This marks a 6.5 percent YoY fall from the Rs 491 crore net profit reported in the same period last year. The firm's revenue from operations meanwhile rose 4 percent YoY to Rs 3,825 crore.

Along with the Q2 results, Godrej Consumer announced an interim dividend of Rs 5 per share for the financial year 2026. The record date to determine the eligibility of the shareholders set to receive the dividend has been set at November 7. The dividend will be paid on or before November 30.

Jefferies on Godrej Consumer:

Jefferies has a 'Buy' call on Godrej Consumer, with a target price of Rs 1,400 apiece. This implies an upside potential of more than 25 percent from the stock's previous closing price.

The international brokerage said that the firm reported a weak Q2 with GST rate cut pressure in India and weather issues in the first half of the financial year 2026. It however noted that the volume growth was 3 percent ahead of its estimate.

HSBC on Godrej Consumer:

HSBC has a 'Buy' call on the stock, with a target price of Rs 1,440 apiece. This implies an upside potential of nearly 29 percent from the stock's previous closing price.

The brokerage noted that the firm's performance in Q2 was weak due to GST cuts and adverse weather. It however expects EBITDA margins to recover in the second half. While adjusting its earnings lower, HSBC said that the firm's growth outlook looks strong in H2.

Motilal Oswal on Godrej Consumer:

Motilal Oswal kept a 'Buy' rating on the stock, with a target price of Rs 1,400 per share. This implies an upside potential of more than 25 percent from the stock's previous closing price.

"The Indian business is witnessing a gradual recovery, with a steady 1H performance reinforcing confidence in an improving trajectory toward accelerated volume growth. With easing palm oil prices, the company is well-positioned for margin recovery in 2HFY26, supporting overall profitability. This combination of volume traction and margin tailwinds strengthens earnings visibility. We model 10%/12% revenue and EBITDA CAGR for FY25-28E. The company is expanding its TAM by foraying into new, faster-growing categories and continues to strengthen its core portfolio," the domestic brokerage said.

PhillipCapital said H2 should see strong rebound in volumes and margin as soap business keeps improving due to stabilising palm oil. Emkay Global meanwhile said that the company is enhancing execution and expanding into high-growth segments, benefits of which will show when macro volatility eases.

Centrum says, "We believe there are early signs of tailwinds," adding 400 bps of negative impact on growth due to GST transition implies high-single digit growth on normalised basis. This shows a "decent performance". It added that as palm oil price volatility improves, margins will see recovery.

Also read: Our LIVE blog on Q2 updates

(With inputs from agencies)

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