Godrej Consumer Products vs Tata Consumer Products 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.

Tata Consumer Products delivered a strong Q4 FY26 with consolidated revenue growing 18% YoY to ₹5,400 crore, driven by broad-based volume-led growth. India business grew 16%, with salt volumes surging and Sampann accelerating 69%. EBITDA margin expanded 100 bps to 14.6%, aided by benign tea costs and operating leverage. Management guided for 50-75 bps margin expansion in FY27, supported by A&P spend normalization (7.5-8.5% of sales) and pricing power. Growth businesses (NourishCo, Sampann, etc.) now contribute 31% of India revenue and are expected to sustain ~30% growth. Key risk: potential broad-based inflation from fuel price increases could pressure margins if not passed through via pricing.

Guidance read

50-75 bps EBITDA margin expansion in FY27: Management reiterated 50-75 bps margin expansion for FY27, driven by operating leverage and benign commodity costs. A&P spend to normalize at 7.5-8.5% of sales: Advertising and promotion spend will be in the 7.5-8.5% range going forward, after a soft Q4. Growth businesses to sustain ~30% growth: Growth businesses (NourishCo, Sampann, etc.) are expected to continue growing at around 30% in the near term. Vietnam soluble capacity expansion online by early 2027: Board approved capacity expansion in Vietnam for solubles, expected to be operational by early 2027.

Risk read

Key risks include Broad-based fuel price inflation — If fuel prices rise broadly, it could lead to cost inflation across the industry, potentially pressuring margins if pricing actions are not taken.; Geopolitical disruption in Middle East impacting exports — Shipping disruptions via Dubai in March impacted international business; management noted normalization in April but risk remains.; Tea price volatility — Management acknowledged difficulty in forecasting tea prices due to climate and weather uncertainties, which could impact margins.; US coffee margin recovery may be delayed — While coffee prices are softening, inventory in the channel may delay margin improvement; competitive pricing actions could also cap upside..

Promise ledger

Scorecard data is being built as historical quarters are processed.