# Godrej Consumer Reports 19% Revenue Growth Amid Rising Input Costs Strategic pricing and cost savings drive performance despite significant inflationary pressures on raw materials. - **Source:** [mint - companies](https://www.livemint.com/rss/companies) - **Published:** 2026-10-29 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/9047ddbc-75b4-4589-9a74-1c8ae12be875 ## Strong Quarterly Financial Performance Godrej Consumer Products reported a 19% year-on-year revenue increase to ₹4,413.09 crore for Q2FY27. Net profit grew by 13.8% to reach ₹522.92 crore, while Ebitda rose 12% to ₹820 crore. These results reflect a robust operational performance, aligning with the company's strategic priorities despite the challenging macroeconomic environment and rising input costs. ## Volume Growth and Pricing Strategy The company achieved an 8% underlying volume growth, demonstrating sustained consumer demand alongside price-led gains. Management implemented sharp price increases, particularly within the fabric care portfolio, and reduced product grammage to mitigate inflationary pressures. These stringent pricing actions were balanced with a comprehensive cost savings program and optimized media and trade investments. ## Raw Material and Cost Pressures Input costs surged as Brent crude prices rose 40% year-on-year, impacting derivatives like linear alkylbenzene sulfonic acid used in fabric care. Soap production also faced significant pressure, leading to grammage reductions. Management continues to monitor these sequential cost increases closely, maintaining a focus on operational excellence to protect margins amidst volatile commodity markets. ## Segmental and Regional Growth Drivers Home care grew 19%, with incense sticks becoming the largest branded player in the category. International markets also performed strongly; Indonesia recorded 20% sales growth, while Africa, the US, and West Asia saw a 40% increase in rupee terms. These gains occurred despite regional challenges, such as liquefied petroleum gas price hikes in Indonesia. ## Trade Inventory and Channel Management Standalone business sales grew 13%, supported by 7% underlying volume growth. This performance was achieved despite a 150-basis-point impact from trade inventory corrections during the quarter. CEO Aasif Malabari emphasized that maintaining healthy channel levels remains essential for long-term operational excellence and allows the sales team to focus purely on product offtake. ## Leadership Transition and Search The company is currently searching for a new India CEO following the resignation of Sudhir Sitapati on 11 August. Management is prioritizing candidates who align with Godrej values and possess an entrepreneurial mindset. This leadership hire is considered critical for maintaining the company's strategic direction and business ambitions in the evolving consumer market. ## Shareholder Returns and Market Reaction The board declared an interim dividend of ₹5 per equity share, representing 500% of the ₹1 face value for FY27. Following the results, Godrej Consumer shares closed 1.82% higher at ₹837 on the National Stock Exchange. This performance outperformed the benchmark Nifty 50 index, which recorded a gain of 1.05% on the same day. ## Strategic Outlook and Market Position Godrej Consumer continues to strengthen its market position across categories like air fresheners and hair colors, even amid weak monsoons linked to El Niño. By balancing aggressive pricing with cost optimization, the firm maintains its competitive edge. Future growth will depend on navigating ongoing commodity volatility and successfully integrating new leadership into the organization. ## Sources covering this story - https://www.livemint.com/companies/company-results/godrej-consumer-s-q2-revenue-rises-19-as-pricing-hikes-offset-cost-pressures-11793269131592.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._