GCPL raises ad spends 13% in Q1 as sales grow 19%, profit rises 11%

The standalone India business recorded 12% sales growth, supported by 7% underlying volume growth

by e4m Staff
Published: Aug 7, 2026 1:46 PM | 2 min read

Godrej Consumer Products Ltd (GCPL) reported a 13% year-on-year increase in advertising and publicity expenditure, totaling ₹305.8 crore for the quarter ending June 30, 2026, as part of its strategy to enhance brand investment and expand product categories.
The company achieved a 19% year-on-year growth in consolidated sales, with a 9% underlying volume growth, while consolidated EBITDA rose by 14% and net profit increased by 11% to ₹505 crore.
The standalone India business experienced a 12% sales growth, with Indonesia showing a 15% increase, while the Africa, USA, and Middle East (GAUM) markets saw the highest growth at 47% year-on-year, driven by strong media investments and new product launches.
GCPL's total expenses rose nearly 19% to ₹3,585 crore, attributed to increased raw material, packaging, and employee costs, but the company remains optimistic about meeting its FY27 guidance due to easing input costs and sustained revenue momentum.

Godrej Consumer Products Ltd (GCPL) increased its advertising and publicity expenditure by 13% year-on-year to ₹305.8 crore in the quarter ended June 30, 2026, up from ₹271.8 crore in the corresponding period last year, as the FMCG major stepped up investments behind its brands while expanding into new product categories.

Advertising and publicity expenses accounted for just over 7% of the company's quarterly revenue, reflecting its continued focus on brand building amid elevated input costs and growing competition in the fast-moving consumer goods market.

The increased marketing investment came as GCPL reported 19% year-on-year growth in consolidated sales, driven by 9% underlying volume growth. Consolidated EBITDA grew 14%, while consolidated net profit increased 11% to ₹505 crore.

The standalone India business recorded 12% sales growth, supported by 7% underlying volume growth, while Indonesia posted 15% sales growth. The Africa, USA and Middle East (GAUM) business delivered the strongest performance among its international markets, with sales rising 47% year-on-year.

According to the company, the strong performance in GAUM was driven by its FMCG portfolio, where media investments were doubled during the quarter, alongside continued strength in the Hair Fashion business, expansion of Air Fresheners across markets and the pilot launch of Good Knight Incense Sticks in Nigeria, which received encouraging consumer feedback.

Commenting on the performance, Managing Director and CEO Sudhir Sitapati said the company delivered a strong start to FY27 despite elevated commodity prices and geopolitical volatility impacting input costs.

"Q1 FY27 has been a strong start to the year for Godrej Consumer Products Limited. At a consolidated level, revenues grew 19% year-on-year, with underlying volume growth of 9%. EBITDA grew 14%, with margins at 19.0%. Net profit grew 11%, reflecting healthy underlying earnings quality, even as margins absorbed some near-term commodity pressure," he said.

Sitapati added that the company's volume-led momentum strengthened sequentially during the quarter, supported by resilient categories, strong brands and consistent execution across markets.

GCPL also continued expanding into new categories during the quarter. It launched Godrej Rizz, marking its entry into the ₹3,000 crore liquid dishwash category, and rolled out Godrej Spic toilet cleaners across India after strong consumer response in Tamil Nadu.

The company said brands including Godrej Fab, Good Knight Incense Sticks and Godrej Aer continued to register strong growth, while newer businesses in toilet cleaners, body wash and face wash are progressing in line with expectations.

On the cost front, raw material and packaging expenses increased to ₹1,728 crore from ₹1,480 crore a year earlier, while employee benefit expenses rose to ₹319 crore. Total expenses climbed nearly 19% to ₹3,585 crore.

GCPL said easing input costs and sustained revenue momentum have strengthened its confidence in meeting its FY27 guidance, with the potential to exceed expectations in select areas.