#EBITDA #MARGIN
The major raw materials used by the company includes wood pulp, cotton and viscose. On a TTM basis for the quarter ended March 2025, the EBITDA margin contracted by ~288 bps YoY ~23% (v/s 25.9% on a TTM basis for the quarter ended March 2024). As a percentage of revenue, purchase of stock, employee benefit expense witnessed an expansion YoY. In Q1 FY26 (Apr-Jun), EBITDA margin stood at 28.4% (v/s 12.7% for the quarter ended June 2024). Company observed an improvement on the back of moderation in the key raw materials. As a percentage of revenue, purchase of stock and employee benefit expense witnessed a contraction YoY.
The major raw materials used by the company includes wood pulp, cotton and viscose. On a TTM basis for the quarter ended March 2025, the EBITDA margin contracted by ~288 bps YoY ~23% (v/s 25.9% on a TTM basis for the quarter ended March 2024). As a percentage of revenue, purchase of stock, employee benefit expense witnessed an expansion YoY. In Q1 FY26 (Apr-Jun), EBITDA margin stood at 28.4% (v/s 12.7% for the quarter ended June 2024). Company observed an improvement on the back of moderation in the key raw materials. As a percentage of revenue, purchase of stock and employee benefit expense witnessed a contraction YoY.
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#ROCE
As on 31st March 2025, ROCE for the company increased to 115.95%, owing to a decrease in the capital employed. The company is actively exploring opportunities to optimize borrowing costs and maximize yield on investments. Further, better utilization of capital and emerging categories in different segments would help in improving the operating profit and ROCE of the company.
As on 31st March 2025, ROCE for the company increased to 115.95%, owing to a decrease in the capital employed. The company is actively exploring opportunities to optimize borrowing costs and maximize yield on investments. Further, better utilization of capital and emerging categories in different segments would help in improving the operating profit and ROCE of the company.
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#COMPANY #POTENTIAL
โข Indian FMCG sector has witnessed a favorable recovery in the volume growth during the year. In FY24, it posted a volume growth of ~4% and is further anticipated to deliver a mid single-digit growth in FY25. โข Feminine hygiene is one of the most under penetrated segments in the consumer space. While product affordability was an issue earlier, today the product is available at a cheaper price. Developed countries have extremely high levels of penetration in the feminine hygiene space. However, surge in awareness towards maintaining personal hygiene is one of the major factors accelerating the growth of the feminine hygiene industry especially in developing countries. โข With higher product affordability, rising distribution, increasing education and income levels among females, rapid urbanization, rising proportion of working women, higher product awareness through media, breaking of taboos and category development cloth usage to proper hygienic methods. efforts by various companies, usage is picking up in what is an essential product for a large segment of the population. The confluence of company initiatives and favourable social factors should drive rapid growth in the category. โข The introduction of sanitary napkin vending machines in public places like schools, shopping malls, cinema halls etc. increases accessibility and awareness about the products. This will increase usage and acceptance and will help in the shift from tradition โข Changing demographic trends, rising per capita income, rising awareness for healthy lifestyle, under-penetrated healthcare space in India, higher share of non-communicable diseases, better healthcare technology coupled with cost competitiveness are some of the factors which would be aiding the growth of the healthcare industry in India.
โข Indian FMCG sector has witnessed a favorable recovery in the volume growth during the year. In FY24, it posted a volume growth of ~4% and is further anticipated to deliver a mid single-digit growth in FY25. โข Feminine hygiene is one of the most under penetrated segments in the consumer space. While product affordability was an issue earlier, today the product is available at a cheaper price. Developed countries have extremely high levels of penetration in the feminine hygiene space. However, surge in awareness towards maintaining personal hygiene is one of the major factors accelerating the growth of the feminine hygiene industry especially in developing countries. โข With higher product affordability, rising distribution, increasing education and income levels among females, rapid urbanization, rising proportion of working women, higher product awareness through media, breaking of taboos and category development cloth usage to proper hygienic methods. efforts by various companies, usage is picking up in what is an essential product for a large segment of the population. The confluence of company initiatives and favourable social factors should drive rapid growth in the category. โข The introduction of sanitary napkin vending machines in public places like schools, shopping malls, cinema halls etc. increases accessibility and awareness about the products. This will increase usage and acceptance and will help in the shift from tradition โข Changing demographic trends, rising per capita income, rising awareness for healthy lifestyle, under-penetrated healthcare space in India, higher share of non-communicable diseases, better healthcare technology coupled with cost competitiveness are some of the factors which would be aiding the growth of the healthcare industry in India.
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#COMPANY #OUTLOOK
โข Strong volume growth in the feminine hygiene segment will be driven by a combination of extremely low category penetration and growing distribution reach. They expect volume consumption growth within the FMCG category to be in the mid single-digit in the next 5-7 years. โข The companyโs products across categories reach only a fraction of their parent companyโs reach. While its reach has expanded significantly in the last couple of years, there is a considerable growth potential, given the increased product affordability. With low priced products in both the segments, the company has an opportunity to increase its distribution that would further aid to grow and gain market share across product categories. major categories, they foresee and opportunity to grow this segment into double-digits. lead margins. โข Unlike most other consumer categories in India, there is no unorganized segment. Users move from traditional products like cloth directly to the organized segment, dominated by the big players. The company enjoys the highest market share and the most favourable barriers to entry versus existing and potential competition. Moreover, since consumption is underdeveloped across โข There is huge scope for premiumization, as consumers trade up to thinner and โall nightโ products. Feminine hygiene features strong brand loyalty in India and worldwide. Consumers usually trade up and rarely trade down. Premiumization of products will โข With a portfolio of essentials and healthcare, the company would continue to remain focused on product innovation-led customer acquisition. Penetration play shall continue, but at a steady pace.
โข Strong volume growth in the feminine hygiene segment will be driven by a combination of extremely low category penetration and growing distribution reach. They expect volume consumption growth within the FMCG category to be in the mid single-digit in the next 5-7 years. โข The companyโs products across categories reach only a fraction of their parent companyโs reach. While its reach has expanded significantly in the last couple of years, there is a considerable growth potential, given the increased product affordability. With low priced products in both the segments, the company has an opportunity to increase its distribution that would further aid to grow and gain market share across product categories. major categories, they foresee and opportunity to grow this segment into double-digits. lead margins. โข Unlike most other consumer categories in India, there is no unorganized segment. Users move from traditional products like cloth directly to the organized segment, dominated by the big players. The company enjoys the highest market share and the most favourable barriers to entry versus existing and potential competition. Moreover, since consumption is underdeveloped across โข There is huge scope for premiumization, as consumers trade up to thinner and โall nightโ products. Feminine hygiene features strong brand loyalty in India and worldwide. Consumers usually trade up and rarely trade down. Premiumization of products will โข With a portfolio of essentials and healthcare, the company would continue to remain focused on product innovation-led customer acquisition. Penetration play shall continue, but at a steady pace.
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Procter & Gamble Health 5000-5160
Expected level 6450
Support 4600
Expected level 6450
Support 4600
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Godrej Consumer Products Limited company details report
Godrej Consumer Products Limited is engaged in the manufacturing of personal care, hair care and household care products. The company's personal care range of brands includes Cinthol, Godrej No.1, Godrej protekt. Its hair care range of brands includes Godrej expert, Godrej Nupur etc. Its home care range of brands includes Goodknight, HIT, Godrej Ezee and Godrej Aer. Over the past decade, Godrej Consumer Products Ltd has undertaken several overseas acquisitions/expansion in line with its 3 by 3 approach to build its presence in key emerging markets outside India, with focus on Asia, Africa and Latin America in the product categories of personal wash, hair care and home care. These acquisitions give Godrej Consumer access to well-established international brands and the subsidiaries distribution and marketing networks. In household insecticides, Godrej is a leader in India and Indonesia and is expanding its footprint in Africa. The company is a leader in serving the hair care needs of women of African descent and is the number one player in hair color products in India and sub-Saharan Africa, and among the leading players in Latin America.
Godrej Consumer Products Limited is engaged in the manufacturing of personal care, hair care and household care products. The company's personal care range of brands includes Cinthol, Godrej No.1, Godrej protekt. Its hair care range of brands includes Godrej expert, Godrej Nupur etc. Its home care range of brands includes Goodknight, HIT, Godrej Ezee and Godrej Aer. Over the past decade, Godrej Consumer Products Ltd has undertaken several overseas acquisitions/expansion in line with its 3 by 3 approach to build its presence in key emerging markets outside India, with focus on Asia, Africa and Latin America in the product categories of personal wash, hair care and home care. These acquisitions give Godrej Consumer access to well-established international brands and the subsidiaries distribution and marketing networks. In household insecticides, Godrej is a leader in India and Indonesia and is expanding its footprint in Africa. The company is a leader in serving the hair care needs of women of African descent and is the number one player in hair color products in India and sub-Saharan Africa, and among the leading players in Latin America.
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#SALES #GROWTH
In FY25, the sales grew by 1.9% YoY to โน14,364 cr led by underlying volume growth (UVG) of mid single digit on a consolidated basis. India and Indonesia business reported high singledigit volume growth. Geography wise, India business sales grew by 5.9% to ~โน8,910 cr, Indonesia business grew by 5.4% YoY to ~โน1,991 cr and others (includes Latin America & South Asian Association for Regional Cooperation (SAARC)) grew by 28% YoY to ~โน965 cr. The Godrej Africa, US, & Middle East (GAUM) business sales declined by 17% YoY to ~โน2,652 cr. The sales in INR term was impacted due to currency devaluation in Naira.
In FY25, the sales grew by 1.9% YoY to โน14,364 cr led by underlying volume growth (UVG) of mid single digit on a consolidated basis. India and Indonesia business reported high singledigit volume growth. Geography wise, India business sales grew by 5.9% to ~โน8,910 cr, Indonesia business grew by 5.4% YoY to ~โน1,991 cr and others (includes Latin America & South Asian Association for Regional Cooperation (SAARC)) grew by 28% YoY to ~โน965 cr. The Godrej Africa, US, & Middle East (GAUM) business sales declined by 17% YoY to ~โน2,652 cr. The sales in INR term was impacted due to currency devaluation in Naira.
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#EBITDA #GROWTH
In FY25, the EBITDA grew by 2% YoY to โน3,003 cr mainly led by declined in raw material cost and employee benefit expense. Geography wise, India business EBIT declined by 13.7% YoY to ~โน2,220 cr due to surge in palm oil prices. Indonesia business grew by 9.2% YoY to โน492 cr, Godrej Africa, US, & Middle East (GAUM) business grew by 40% YoY to โน341 cr and others (includes Latin America & South Asian Association for Regional Cooperation (SAARC)) grew to โน80 cr (v/s โน21 cr in FY24). Out of the total expenses, raw material cost including packaging materials consumed constituted ~50%, other expenses ~32%, employee benefit expenses ~10% and purchase of stock in trade constitute ~8% of the total expenses. Under other expenses, advertisement and publicity expenses stood at โน1,369 cr (9.5% of total sales). During the year, the advertisement and publicity expense grew by 2.5% YoY to โน1,369 cr.
In FY25, the EBITDA grew by 2% YoY to โน3,003 cr mainly led by declined in raw material cost and employee benefit expense. Geography wise, India business EBIT declined by 13.7% YoY to ~โน2,220 cr due to surge in palm oil prices. Indonesia business grew by 9.2% YoY to โน492 cr, Godrej Africa, US, & Middle East (GAUM) business grew by 40% YoY to โน341 cr and others (includes Latin America & South Asian Association for Regional Cooperation (SAARC)) grew to โน80 cr (v/s โน21 cr in FY24). Out of the total expenses, raw material cost including packaging materials consumed constituted ~50%, other expenses ~32%, employee benefit expenses ~10% and purchase of stock in trade constitute ~8% of the total expenses. Under other expenses, advertisement and publicity expenses stood at โน1,369 cr (9.5% of total sales). During the year, the advertisement and publicity expense grew by 2.5% YoY to โน1,369 cr.
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#PAT #GROWTH
In FY25, the PAT stood at โน1,852 cr (v/s loss of โน561 cr in FY24 due to exceptional loss of โน2,477 cr pertaining to impairment loss of โน1,391 cr towards brand and goodwill for Africa and โน927 cr relating to loss on sale of subsidiaries and business in East Africa pursuant to changes in business model and long term strategy for Africa, โน71 cr on account of other group restructuring costs, including employees' severance pay and inventory related costs etc and stamp duty payment and other costs in relation to acquisition of Raymond Consumer Care Business of โน87.8 cr). Excluding exceptional loss in FY24 of โน2,477 cr and โน63.2 cr in FY25, the PAT stood at ~โน1,915 cr (v/s ~โน1,916 cr in FY24).
In FY25, the PAT stood at โน1,852 cr (v/s loss of โน561 cr in FY24 due to exceptional loss of โน2,477 cr pertaining to impairment loss of โน1,391 cr towards brand and goodwill for Africa and โน927 cr relating to loss on sale of subsidiaries and business in East Africa pursuant to changes in business model and long term strategy for Africa, โน71 cr on account of other group restructuring costs, including employees' severance pay and inventory related costs etc and stamp duty payment and other costs in relation to acquisition of Raymond Consumer Care Business of โน87.8 cr). Excluding exceptional loss in FY24 of โน2,477 cr and โน63.2 cr in FY25, the PAT stood at ~โน1,915 cr (v/s ~โน1,916 cr in FY24).
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#EBITDA #MARGIN
In FY25, the EBITDA margin remained in the similar level of 20.9%. Geography wise, India business EBIT margin contracted by 567 bps YoY to 24.9% due to higher palm oil prices. The Indonesia business margin expanded by 86 bps YoY to 24.7% led by improvement in gross margin. Godrej Africa, US, & Middle East (GAUM) business margin expanded by 521 bps YoY to 12.9% driven by gross margin expansion, mix improvement and reduction in controllable costs. The others (Latin America & SAARC) business margin expanded by 549 bps YoY to 8.3%. The company key raw materials are palm oil and crude derivatives chemicals. Due to inflation in palm derivatives, the company had taken significant price hikes across the portfolio. It will result in reduced volume-led growth and increased price-led growth.
In FY25, the EBITDA margin remained in the similar level of 20.9%. Geography wise, India business EBIT margin contracted by 567 bps YoY to 24.9% due to higher palm oil prices. The Indonesia business margin expanded by 86 bps YoY to 24.7% led by improvement in gross margin. Godrej Africa, US, & Middle East (GAUM) business margin expanded by 521 bps YoY to 12.9% driven by gross margin expansion, mix improvement and reduction in controllable costs. The others (Latin America & SAARC) business margin expanded by 549 bps YoY to 8.3%. The company key raw materials are palm oil and crude derivatives chemicals. Due to inflation in palm derivatives, the company had taken significant price hikes across the portfolio. It will result in reduced volume-led growth and increased price-led growth.
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#ROCE
In FY25, the return on capital employed improved to ~19.2%. In FY24, the return on capital employed declined to 3.3%. The ratio was lower due to exceptional loss during the year pertaining to impairment loss towards brand and goodwill for Africa and related to loss on sale of subsidiaries and business in East Africa pursuant to changes in business model and long term strategy for Africa. Excluding exceptional loss, the return on capital employed in FY24 stood at ~22.5%.
In FY25, the return on capital employed improved to ~19.2%. In FY24, the return on capital employed declined to 3.3%. The ratio was lower due to exceptional loss during the year pertaining to impairment loss towards brand and goodwill for Africa and related to loss on sale of subsidiaries and business in East Africa pursuant to changes in business model and long term strategy for Africa. Excluding exceptional loss, the return on capital employed in FY24 stood at ~22.5%.
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#ROE
In FY25, the return on equity improved to ~15.1%. In FY24, excluding the exceptional loss, the ROE stood at ~14.5%.
In FY25, the return on equity improved to ~15.1%. In FY24, excluding the exceptional loss, the ROE stood at ~14.5%.
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#COMPANY #POTENTIAL
โข Personal wash: The Indian personal wash market is highly competitive. Many companies are present in the Indian market. The consumption of bath bar soaps is high, whereas it is very low for body wash and shower gel products as it is still a new category for many consumers. Innovative variants and product development has driven the personal wash market in the past few years and will continue to expand the categories by introducing newer products. โข Hair Care: The Indian hair care market is forecasted to reach USD 4.89 billion by 2025 growing at a CAGR of 6.58% during the period (2020-2025). The hair care market in India offers products such as a colourant, hair spray, conditioner, styling gel, hair oil, shampoo, and other products. โข The changing consumer dynamics coupled with increasing product awareness has been identified as the major driver of the market. These changes are majorly due to the high millennial population migration towards cities and rising women employment. Household-insecticide: In Indian household market insecticide, mosquito repellent category is dominant over cockroach & rat repellent category, simply because of the large population based in rural India. Again, in the mosquito repellent category, there are two segments namely in-home segment and personal & outdoor segment. In-home segment has been growing in the country from last many years, but personal & outdoor segment is still at a nascent stage with products like creams, lotions, patches, gels, etc. Rise in vector borne diseases and awareness will Increase the demand of household Insecticide products in India.
โข Personal wash: The Indian personal wash market is highly competitive. Many companies are present in the Indian market. The consumption of bath bar soaps is high, whereas it is very low for body wash and shower gel products as it is still a new category for many consumers. Innovative variants and product development has driven the personal wash market in the past few years and will continue to expand the categories by introducing newer products. โข Hair Care: The Indian hair care market is forecasted to reach USD 4.89 billion by 2025 growing at a CAGR of 6.58% during the period (2020-2025). The hair care market in India offers products such as a colourant, hair spray, conditioner, styling gel, hair oil, shampoo, and other products. โข The changing consumer dynamics coupled with increasing product awareness has been identified as the major driver of the market. These changes are majorly due to the high millennial population migration towards cities and rising women employment. Household-insecticide: In Indian household market insecticide, mosquito repellent category is dominant over cockroach & rat repellent category, simply because of the large population based in rural India. Again, in the mosquito repellent category, there are two segments namely in-home segment and personal & outdoor segment. In-home segment has been growing in the country from last many years, but personal & outdoor segment is still at a nascent stage with products like creams, lotions, patches, gels, etc. Rise in vector borne diseases and awareness will Increase the demand of household Insecticide products in India.
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#COMPANY #OUTLOOK
โข In FY26, the management targets high-single digit consolidated revenue growth (driven by mid-high single digit standalone volume growth) and double-digit EBITDA growth. โข The management aims to achieve double-digit growth in the medium to long term (largely volume-led growth). It targets a consistent rise in operating profit margin through premiumization and operating efficiencies in the medium to long run (especially in the international business). โข The company is focusing on category development, innovation-led premiumization, market share gains, improving volume growth across categories and geographies and cost efficiencies in media and supply chain. โข The company commenced operations at two of its newly inaugurated factories - Chengalpattu in Tamil Naduand and Malanpur in Madhya Pradesh. โข The management anticipates efficiency in sourcing and higher productivity due to newly opened factories and savings in A&P spends to help combat the impact of palm inflation in H1 FY26. โข It expects international margins to keep improving sequentially, albeit at a slower pace. โข The management expects Household Insecticides (HI) and deodorants can perform much better in FY26 as compared to FY25. Further, it expects growth and margins in H2 FY26 to be better than H1 FY26. โข For Park Avenue and Kamasutra, the company aspired to achieve double-digit volume growth and EBITDA margins in line with standalone margin. โข The company spent over โน100 cr on rural van operations in FY25. This helped improve their village/rural outlet reach. Management believes that rural van operations could break-even in FY26 and be accretive from FY27.
It has witnessed a spike in its sales through e-commerce channels and going ahead it expects online sales to contribute around 10% to its total sales in the next 2-3 years. โข In Q3 FY24, the company launched Godrej Fab liquid detergent in select markets of South India at a price of โน99 per litre. It will scale up gradually in the other markets. It also launched Goodknight Agarbatti. It is India's only government registered active based anti-mosquito Agarbatti. Goodknight Agarbatti uses a new molecule, Renofluthrin (RNF), which is close to 2x more effective than most other molecules used in India. The company enjoys exclusivity to use this molecule in the medium term. The market size of Anti-mosquito incense sticks is ~โน1,200 cr. โข Goodknight Agarbatti crossed โน100 cr in sales in 15 months of launch and Goodknight LV (Liquid Vapourizer) gained ~200 bps market share in Q4 FY25. โข The company plans to enter the pet care business in India through Godrej Pet Care (GPC), a subsidiary of Godrej consumer products Limited (GCPL). The pet care is a ~โน5,000 cr category, with a potential of strong double-digit growth for the next few decades. The company will invest โน500 cr in Godrej Pet Care over a period of 5 years. Godrej Agrovet Limited (GAVL) will be the manufacturing and research & development (R&D) partner. The company expects to commence manufacturing in the second half of FY26. It expects ~15%-25% of EBITDA margin in this business. โข In April 2025, it launched โGodrej Ninjaโ, its pet care brand, in the state of Tamil Nadu.
โข In FY26, the management targets high-single digit consolidated revenue growth (driven by mid-high single digit standalone volume growth) and double-digit EBITDA growth. โข The management aims to achieve double-digit growth in the medium to long term (largely volume-led growth). It targets a consistent rise in operating profit margin through premiumization and operating efficiencies in the medium to long run (especially in the international business). โข The company is focusing on category development, innovation-led premiumization, market share gains, improving volume growth across categories and geographies and cost efficiencies in media and supply chain. โข The company commenced operations at two of its newly inaugurated factories - Chengalpattu in Tamil Naduand and Malanpur in Madhya Pradesh. โข The management anticipates efficiency in sourcing and higher productivity due to newly opened factories and savings in A&P spends to help combat the impact of palm inflation in H1 FY26. โข It expects international margins to keep improving sequentially, albeit at a slower pace. โข The management expects Household Insecticides (HI) and deodorants can perform much better in FY26 as compared to FY25. Further, it expects growth and margins in H2 FY26 to be better than H1 FY26. โข For Park Avenue and Kamasutra, the company aspired to achieve double-digit volume growth and EBITDA margins in line with standalone margin. โข The company spent over โน100 cr on rural van operations in FY25. This helped improve their village/rural outlet reach. Management believes that rural van operations could break-even in FY26 and be accretive from FY27.
It has witnessed a spike in its sales through e-commerce channels and going ahead it expects online sales to contribute around 10% to its total sales in the next 2-3 years. โข In Q3 FY24, the company launched Godrej Fab liquid detergent in select markets of South India at a price of โน99 per litre. It will scale up gradually in the other markets. It also launched Goodknight Agarbatti. It is India's only government registered active based anti-mosquito Agarbatti. Goodknight Agarbatti uses a new molecule, Renofluthrin (RNF), which is close to 2x more effective than most other molecules used in India. The company enjoys exclusivity to use this molecule in the medium term. The market size of Anti-mosquito incense sticks is ~โน1,200 cr. โข Goodknight Agarbatti crossed โน100 cr in sales in 15 months of launch and Goodknight LV (Liquid Vapourizer) gained ~200 bps market share in Q4 FY25. โข The company plans to enter the pet care business in India through Godrej Pet Care (GPC), a subsidiary of Godrej consumer products Limited (GCPL). The pet care is a ~โน5,000 cr category, with a potential of strong double-digit growth for the next few decades. The company will invest โน500 cr in Godrej Pet Care over a period of 5 years. Godrej Agrovet Limited (GAVL) will be the manufacturing and research & development (R&D) partner. The company expects to commence manufacturing in the second half of FY26. It expects ~15%-25% of EBITDA margin in this business. โข In April 2025, it launched โGodrej Ninjaโ, its pet care brand, in the state of Tamil Nadu.
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