Godrej Consumer's profit rises, but margin slips for a second quarter
Costs grew faster than revenue both YoY and QoQ, while a lower tax rate supported net profit growth.
Filed 29 Oct 2026, 15:41 IST · after market close · Godrej Consumer Products Ltd (GODREJCP)
Key takeaways
- Consolidated net profit rose +13.84% YoY to Rs 522.92 cr, while operating margin fell 0.59 percentage points.
- Expenses grew +16.22% YoY against revenue growth of +15.37%, extending the margin pressure into a second straight quarter.
- Operating margin at 18.58% remained 6.11 percentage points above the 12.47% median for 23 reporting FMCG peers.
Price around the results
Revenue growth did not fully reach profit
Consolidated revenue grew +15.37% YoY and +4.44% QoQ, but operating profit increased only +11.82% YoY and +2.33% QoQ. The gap reflects costs growing faster than revenue in both comparisons. Net profit growth was firmer at +13.84% YoY, helped by the tax rate falling 1.59 percentage points to 24.92%.
Costs pushed operating margin lower
Expenses rose +16.22% YoY against revenue growth of +15.37%, narrowing operating margin by 0.59 percentage points to 18.58%. The same pattern continued sequentially: expenses grew +4.93% while revenue rose +4.44%, cutting margin by 0.38 percentage points. Interest expense also increased +15.10% YoY, adding pressure below operating profit.
Margin has declined for two straight quarters
Operating margin has fallen from 21.57% in Q4FY26 to 18.96% in Q1FY27 and 18.58% in Q2FY27. Despite that two-quarter decline, the company remained 6.11 percentage points above the 12.47% median operating margin among 23 FMCG peers that had reported. Other income contributed 5.98% of pre-tax profit, while the lower tax rate was a clearer support to net profit than this non-operating item.
Results were filed after market close
The consolidated results were filed after market close, so there was no current-session reaction to assess. In the stock's last eight result-day responses, it rose twice and fell six times, with a median absolute move of 2.88%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,413 cr | ₹4,225 cr | +4.44% | +15.37% |
| Other income | ₹42 cr | ₹36 cr | +14.70% | +25.52% |
| Expenses | ₹3,593 cr | ₹3,424 cr | +4.93% | +16.22% |
| Operating profit | ₹820 cr | ₹801 cr | +2.33% | +11.82% |
| Operating margin (%) | 18.58% | 18.96% | — | — |
| Interest | ₹87 cr | ₹86 cr | +1.59% | +15.10% |
| Depreciation | ₹78 cr | ₹75 cr | +3.58% | +18.59% |
| Profit before tax | ₹696 cr | ₹677 cr | +2.95% | +11.44% |
| Tax | ₹174 cr | ₹172 cr | +0.90% | +4.77% |
| Net profit | ₹523 cr | ₹505 cr | +3.65% | +13.84% |
| EPS (₹) | ₹5.11 | ₹4.93 | +3.65% | +13.81% |
Operating margin of 18.58% compares with a Fast Moving Consumer Goods sector median of 12.47% across 23 peers that have reported Q2FY27.
What to watch
- Whether operating margin stabilizes after falling from 21.57% in Q4FY26 to 18.58% in Q2FY27.
- Whether expenses continue to grow faster than revenue after the YoY gap of +16.22% versus +15.37%.
- Whether the tax rate remains near 24.92% after falling 1.59 percentage points YoY.