1QFY27: Slight Margin Miss; Confident in Exceeding F27 Targets

Research evidence excerpt

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M

Update

August 7, 2026 03:39 PM GMT

Godrej Consumer Products Limited | Asia Pacific

Morgan Stanley India Company Private Limited+

Archana Menon, CFA

Equity Analyst

1QF27: Slight Margin Miss;

Confident in Exceeding F27

Targets

Shravan Vohra

Equity Analyst

Gaurav Varma

Research Associate

AlphaSignals Earnings Reaction

Unchanged

Modest shortfall

Largely unchanged

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Godrej Consumer Products Limited (GOCP.NS, GCPL IS)

India Consumer | India

significant double digits; EBITDA growth in low double digits.

Stock Rating

Industry View

Price target

Up/downside to price target (%)

Shr price, close (Aug 7, 2026)

52-Week Range

Sh out, dil, curr (mn)

Mkt cap, curr (mn)

EV, curr (mn)

Avg daily trading value (mn)

India: F27 volume to grow ~8%. Pricing to be similar at ~5% in 2Q. 2Q margins to

Fiscal Year Ending

remain under pressure, and be back to 24-26% range in 2H.

EPS (Rs)**

20.49 23.41 27.37 31.48

EPS (Rs)§

20.79 23.43 27.42 30.66

Revenue, net (Rs mn)

151,779 173,007 189,099 207,158

EBITDA (Rs mn)

31,562 35,392 40,075 44,843

ModelWare net inc (Rs

20,946 23,932 27,982 32,185

mn)

P/E

48.6

44.9

38.4

33.4

P/BV

8.0

7.9

7.3

6.7

RNOA (%)

17.0

17.1

20.3

22.5

ROE (%)

17.4

18.9

20.6

21.9

EV/EBITDA

32.3

29.9

26.2

23.1

Div yld (%)

1.0

1.3

1.6

1.8

FCF yld ratio (%)**

1.0

2.6

2.4

2.8

Leverage (EOP) (%)

2.9

(7.5) (12.9) (18.3)

Key Takeaways

1Q top-line trends were broadly known. Consolidated EBITDA margin was 19%, in

line with consensus (we were at 20.1%).

Confident in meeting/exceeding F27 guidance. Consolidated revenue growth in

Indian EBITDA growth to be in high single digits or double digits in F27.

GCPL saw ~6% delta in cost inflation (besides planned 3%) and took ~5%

blended price hike. If crude stays within $80-85/bbl, no further pricing actions

needed.

Consolidated revenue, EBITDA, and adjusted PAT grew +19%, +15%, and +10% YoY,

+4%, -1%, and -3% vs. our estimates, respectively.

India – steady top line, lower margins: Revenue grew 12% YoY, led by 7% volume

growth.…