New Delhi, April 6 Godrej Consumer Products Ltd (GCPL) said on Monday that it expects to achieve double-digit sales growth and a high single-digit increase in volume during the January-March quarter of FY26.
Policy factors, including personal income tax relief and GST rationalization, position the industry well to offset the impact of crude-led inflation as it enters FY27, GCPL said.
"Against this backdrop, our standalone business is expected to deliver double-digit underlying sales growth and high-single digit underlying volume growth in Q4 FY26, in line with the guidance provided at our last analyst interaction," it said.
Excluding the soap category, volume growth continues in double digits, positioning GCPL among leaders in the Indian fast-moving consumer goods sector, the company said in its quarterly update.
"Growth has been broad-based, with all our future categories growing well," it added.
GCPL, the FMCG arm of Godrej Industries Group (GIG), said its standalone pre-tax margins (India business) are expected to sustain within its "normative range," supported by cost savings.
Commenting on the Indian market, the company said, "Demand conditions and consumer sentiment remained steady in the domestic FMCG sector through Q4 FY26, with trade channels normalizing following the GST transition and food inflation easing."
At the consolidated level, which includes earnings from international markets, GCPL expects to deliver close to double-digit revenue growth.
This is driven by a consistent sequential improvement trajectory through the year, with EBITDA (earnings before interest, tax, depreciation and amortisation) growth broadly in line with revenue, it added.
GCPL gets nearly 45 per cent of its revenue from the international market.
Its Indonesian business, the second largest after India, continues to show signs of stabilization with the "peak of the competitive intensity behind us."
"Underlying volume growth is expected at mid-single digit in Q4, with market share gains sustained across categories," it said.
The GAUM (Godrej Africa, USA, and Middle East) business continues to deliver strong results, with double-digit sales growth and high-single volume growth.
"The growth has been broad-based across geographies and categories with hair fashion and other categories continuing to see strong consumer traction of our products across markets," it said.
About the outlook, GCPL said that it expects "sustained inflation" into the first half of FY27, and will address the same through a combination of pricing actions and cost efficiency programmes.
"We have seen and navigated larger volatility in commodities in the past than we are experiencing at this stage. With Brent crude between USD 100-110 and palm between 4500-4800 MYR, we expect a cost hit of 6-9 per cent," it said.
GCPL further said it should be able to offset the impact of most of these cost increases through pricing, cost savings, leverage, and some prudent media optimisation.
Elevated costs augur well for the formalisation of the demand in categories like burning formats of household insecticides and upgradation in laundry, supporting stronger demand.
"Hence, even if costs remain at these levels, we should be broadly in line with our original bottom line plans for FY27 while stepping up revenue growth," said GCPL.