Godrej Consumer Products vs HUL Q4 FY26

GO

Godrej Consumer Products

Q4 FY26 · Consumer

Godrej Consumer Products delivered a strong Q4 FY26 with consolidated revenue growth of 11% YoY and EBITDA margin of 21.7%. India standalone posted 8% volume growth and 10% sales growth with margins at 24.7%, driven by home care (12% growth) and disciplined cost management. Personal care lagged at 3% growth due to muted soaps and hair color. Indonesia showed signs of stabilization with 4% volume growth, while Africa, USA, and Middle East grew 20%. Management expects near-term margin pressure from crude oil inflation (7-9% input cost inflation) but remains confident in volume recovery and pricing actions. Key risk: sustained crude above $110 could compress margins more than anticipated.

Guidance read

India business to deliver calibrated growth at normative EBITDA margins: India standalone expected to maintain normative EBITDA margins supported by improving demand and innovation. Indonesia performance to improve meaningfully from FY27: Expect a meaningful step-up in Indonesia as pricing pressure abates and market normalizes. Africa, USA, Middle East to deliver double-digit revenue and profit growth: Medium-term target of double-digit revenue and profit growth in Africa, USA, and Middle East. Near-term margin pressure from crude oil inflation: Expect lower EBITDA margins in Q1 and Q2 FY27 due to crude oil at $100-110, but absolute EBITDA to remain healthy.

Risk read

Key risks include Sustained crude oil inflation above $110 — If crude oil remains elevated beyond $110, margin pressure could persist longer than anticipated, impacting profitability.; Personal care growth remains muted — Personal care grew only 3% in Q4; if soaps and hair color do not recover, overall India growth could be constrained.; El Niño weather impact on HI category — Hotter summer could reduce household insecticide demand, while benefiting soaps; net effect uncertain.; Competitive intensity in Indonesia — Pricing pressures in Indonesia have bottomed out but competitive dynamics could resurface, delaying recovery..

Promise ledger

Scorecard data is being built as historical quarters are processed.

HI

HUL

Q4 FY26 · Consumer

HUL delivered 8% revenue growth in Q4 FY26, the highest in 12 quarters, driven by 7% underlying sales growth led by volumes. EBITDA margin at 23.7% came at the higher end of guidance, with PAT before exceptional items at ₹2,711 crore (+4% YoY). Growth was broad-based across segments, with home care and beauty & well-being leading. Management highlighted strong execution in quick commerce, premiumization in personal care, and a turnaround in lifestyle nutrition. For FY27, they expect better performance than FY26 despite geopolitical volatility and input cost inflation of 8-10%. Medium-term margin guidance remains 22.5-23.5%. Key risk: sustained crude inflation and currency depreciation could pressure margins and require further pricing actions.

Guidance read

FY27 to be better than FY26: Management expects FY27 performance to exceed FY26, driven by portfolio transformation and execution improvements. Medium-term EBITDA margin guidance 22.5-23.5%: Margin guidance maintained at 22.5-23.5% for the medium term, with flexibility to operate at lower end if cost pressures persist. Price increases of 2-5% already taken: Calibrated price increases of 2-5% implemented across home care and personal care to offset input cost inflation. ₹2,000 crore capex in premium formats: Capital investment of ₹2,000 crore planned for expanding capacity in premium formats across home care, personal care, and beauty.

Risk read

Key risks include Sustained crude inflation and currency depreciation — Crude-linked commodity costs and rupee depreciation could increase input costs beyond current 8-10% inflation, pressuring margins.; El Niño impact on rural demand — Below-normal monsoon forecast (92%) could affect rural incomes and demand, though reservoir levels and MSPs provide some buffer.; Competitive intensity limiting pricing power — If competitors do not follow price hikes, HUL may need to absorb cost inflation or lose market share, potentially impacting margins.; Mass skincare portfolio drag — Mass skincare (Glow & Lovely, talcum powders) remained subdued, weighing on overall beauty segment growth despite premium strength..

Promise ledger

Of 2 tracked promises, management 1 met, 1 close, 0 missed.