Motilal Oswal Initiates Coverage on Godrej Consumer, Sets Price Target of Rs 1,300
Godrej Consumer's Q4FY26 Earnings: A Mixed Bag
Godrej Consumer Products (GCPL) released its consolidated financial results for the fourth quarter of fiscal year 2026, showing a mixed performance. The company's consolidated revenue grew 11% year-over-year (YoY) to INR 39 billion, surpassing the estimated figure of INR 39.9 billion. However, the volume growth stood at a lower 6%.
Key Performance Indicators
| Quarter | Consolidated Revenue | Volume Growth |
|---|---|---|
| Q4FY26 | INR 39 billion (11% YoY) | 6% |
| Q4FY25 | INR 35.2 billion | - |
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The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) also grew 11% YoY, but fell short of the estimated 15%. This decline was largely due to the lower-than-expected performance of the international business, which was affected by high brand investments. On the other hand, India EBITDA grew by 19% YoY, while international EBITDA fell 4%.
Outlook and Recommendations
Despite the mixed performance, the company has been working to address the gaps in profitability and growth across its international business. With a growth-centric focus, Motilal Oswal remains constructive on GCPL and reiterates its BUY rating with a target price (TP) of INR 1,300. The target price is based on a price-to-earnings ratio of 45 times the estimated earnings per share (EPS) for March 2028.
Investor Takeaway
Investors should consider buying Godrej Consumer with a target price of Rs 1,300.
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