Godrej Consumer Products Ltd (GODREJCP) Q2 FY27 Results Analysis: Revenue Jumps 19%, Margins Compress on Every Basis
Godrej Consumer Products Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 4,413.09 Cr (+19.01% YoY) and PAT growth of +13.84% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 29, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 4,413.09 Cr (+19.01% YoY) |
| PAT (Q2) | Rs. 522.92 Cr (+13.84% YoY) |
| EBITDA margin | 18.38% (-60 bps YoY) |
| EPS (Q2) | Rs. 5.11 (+13.81% YoY) |
| Market cap | Rs. 85,925.10 Cr |
| CMP | Rs. 837.00 |
Quarter Snapshot
Q2 FY27 delivered on management's growth guidance — consolidated revenue +19.01% and EBITDA +15.27% YoY, led by Africa (+40.29%) and Indonesia (+20.11%) — but margins compressed on every basis and standalone normalized PAT was flat. The binding constraints are the India margin recovery to the 24–26% band in H2 and weak cash conversion (CFO/PAT 0.63x) on a Rs.602.52 Cr inventory build, with dividends partly funded by short-term debt.
Key Investment Insights
Key Positives
- Consolidated revenue grew 19.01% YoY to Rs.4,413.09 Cr, ahead of the double-digit guidance floor and the Oct 5 high-teens update
- EBITDA grew 15.27% YoY to Rs.811.12 Cr, meeting double-digit guidance
- Africa (incl. Strength of Nature) revenue grew 40.29% YoY with segment margin expanding to 12.60% from 12.14%, and result growth (+45.60%) outpacing revenue growth
- Indonesia revenue grew 20.11% YoY, accelerating from +15% in Q1
- India revenue grew 12.82% YoY despite the deliberate GT trade-inventory correction (~100–150 bps standalone drag)
- International subsidiaries contributed 35.49% of consolidated PAT
- Interim dividend of Rs.5/share declared, ≈49.8% of H1 PAT, in line with the ~50% payout policy
- Effective tax rate fell to 24.92% from 26.51% YoY
Risk Factors
- Company operating margin compressed to 18.7% from 19.9% YoY; standalone EBITDA margin fell 187 bps to 20.21%
- India segment margin at 19.66%, down 204 bps YoY and well below the 24–26% normative band
- Others (Latin America) segment result fell 37.91% YoY with margin collapsing to 7.55% from 17.06%
- CFO/PAT of 0.63x and CFO/EBITDA of 0.41x; dividends paid (Rs.1,023.27 Cr) exceeded operating cash flow and were partly funded by Rs.519.74 Cr net short-term borrowing
- Indonesia margin slid to 21.83% from 23.37% YoY and 24.15% in Q1 amid a negative pricing environment
- Standalone reported PAT declined 5.31% YoY with normalized PAT flat at +0.10%
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.