Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Godrej Consumer Products Limited (NSE: GODREJCP) Q4 2026 Earnings Call dated May. 06, 2026
Corporate Participants:
Vishal Kedia — Investor Relations
Sudhir Sitapati — Managing Director and CEO
Analysts:
Unidentified Participant
Mihir Shah — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Godrej Consumer Products Ltd. Q4FY26 earnings call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Vishal Kedia, head of Strategy and Investor Relations.
Thank you. And over to you, sir.
Vishal Kedia — Investor Relations
Good evening to all. Welcome to the conference call for Godrich Consumer Products for quarter four. We will start the call with an opening statement from our CEO Mr. Sudhir Sitapathy. Following which we will go to a statement by our CFO Mr. Asif Malwadi. We will then move to the questions. Post the questions. We’ll also have an ending statement. I now hand over the call to Mr. Sumil Sitapathy for his opening statement.
Sudhir Sitapati — Managing Director and CEO
Good evening everybody. Q4FY26 has been a quarter of strong broad based performance for Gosridge Consumer Products Ltd. Fully and strategic priorities. The quarter brings to a close a year in which the consistent execution of our goodness manifesto, our focus on category development and our discipline on cost have come together to deliver profitable growth across our portfolio. In Q4 at a consolidated level, revenues grew 11% in INR terms on the back of 6% underlying volume growth. EBITDA with operating margin at 21.7% and net profit after tax grew by 10% on a reported basis reflecting the underlying quality of earnings being delivered by the business.
I would like to call out growth have been weaker over the last two years. This is driven by significantly stepped up investments to ignite growth and expand into new categories. We have already seen parts of the portfolio that have started to significantly outstrip growth driven by investments and profitability driven by scale benefits and we expect this to happen across the portfolio. Our standalone business delivered an excellent quarter driven by 8% underlying volume growth and 10% sales growth.
EBITDA with margins at a healthy 24.7% supported by disciplined cost management, calibrated pricing actions and improved operating leverage. Within the standalone business, home care delivered 12% value growth with strong momentum across household insecticide air fresheners and fabric care and consistent market share gains in our key categories. Personal care grew 3% with personal wash continuing gaining market share on the back of strong in market execution. Perfume and deodorants delivered strong double digit growth led by perfumes with KS99 now scaled and India turning to our international portfolio in Indonesia, the pricing pressures we have been calling out over the last several quarters have now largely bottomed out and we are seeing increasingly clear signs of sterilization.
The business delivered 4% underlying volume growth and 3% sales growth and we continue to expect operating conditions to improve from FY 2027 as the market normalizes. Our Africa, USA and Middle east business delivered another strong quarter with top line growth of 20%. EBITDA grew 2% reflecting a deliberate doubling of media spends behind our FMCG CATE to build a long term franchise. We believe this is the right investment to make as the geography enters its next phase of growth. Our Latin America and Others business delivered 26% sales growth EBITDA impact costs in the quarter.
We expect this to normalize over the coming quarters. Looking ahead, we entered 2027 from a position of strength. Our India business is well placed to deliver continued calibrated growth at normative EBITDA margins supported by improving demand trends, a strengthening innovation pipeline and consistent in market execution. In Indonesia, we expect a meaningful step up in performance as pricing pressure abates and our Africa, US and Middle east business continues to deliver on its stated objective of double digit revenue and profit growth over the medium term.
Before I close I would like to briefly flag and then hand over to our Chief Financial Officer an important presentational change that we are adopting from this quarter onwards in a manner in which we report revenue. I would also take the opportunity to personally invite you to our investor meet scheduled to take place on Monday 11th May. The event will be headed our headquarters and will provide in depth perspective on our strategic vision, recent business performance and forward looking initiatives.
Our leadership team will share comprehensive updates on market trends, innovation and the company’s growth map as the year closes. Our unwavering focus on category development, cost discipline and operational excellence continues to translate into improving performance. With strengthening demand trends, consistent portfolio action and a clear strategic roadmap. We are increasingly confident in our ability to deliver sustained profitable growth and create long term value for all our shareholders.
I now hand over to Asif.
Vishal Kedia — Investor Relations
Thank you Sudhir Good evening everyone. I would like to take the next few minutes to walk you through an important Q and A in the way. We are presenting the revenue from the quarter ended 31st March 2026 onwards. To set the context in the FMCG industry, companies incur a wide variety of customer related expenditures like in store visibility, display arrangements, mailers and other similar channel level strengths. Industry practice on how to present these trends has historically been mixed. Some companies have recognized them as expense on a gross basis while others have netted them off again.
DCPL25 presented some of these spends as expenses. Our position restricts on a set of considered judgments that these spends do not have a direct correlation with sales. Products would continue to be sold to our customers under existing commercial arrangements regardless of whether we incur these fends or not. That pricing remains unchanged irrespective of these arrangements and a fair value for the services received could be reasonably demonstrated on that basis. We have presented some of these pendant operating expenses similar in substance to other marketing and promotional efforts undertaken by the company.
To give an example, visibility in stock and visibility on the street are out of home are two spends. This can be interchangeably used. In February 2026 the expert advisory Committee of the Institute of Chartered Accountants Vinya took up this matter for detailed examination. The committee considered multiple instances of customer related arrangements typically encountered in the consumer goods sector and went through a detailed evaluation of the facts and circumstances of its instance. Having considered each of these in detail, the committee concluded that these customer related spends should be netted off from revenue rather than presented separately as operating expense.
ECPM has carefully reviewed the opinion and presented the relevant spend accordingly. The Company is implementing the opinion of the Expert Advisory Committee in letter and spirit. The impact is straightforward. Revenue from operations and the corresponding banks within other expenses both reduced by the same amount period after period. There is no impact whatsoever on absolute EBITDA PAP profit after tax. Total equity or cash flow margin percentages would be optically higher under the new presentation simply because the denominator is smaller while the absolute profit pool is unchanged.
The underlying economics of the business, our pricing, our competitive position, the cash we generate remains the same. Our strategy and the way of running our business remains the same. There will be no changes in the way we incur these spends going forward. Also to clarify, while AMC expenses optically look lower for the quarter, if you compare this after restated, the amounts are actually broadly similar. Y o yes, we stated revenue for the last eight quarters and the last five years on the new presentation is set out in the investor communication accompanying our results.
There is no material impact on growth or profit metrics. We are actually extremely pleased that IPA has reduced this ESD opinion to this Effect which will enable better consistency and complexity across all the players. Thank you. We will now move to questions.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.
Unidentified Participant
The first question is from the line of Vivek M from Jefferies. Please go ahead.
Operator
Vivek, your line is unmuted. Please proceed.
Vishal Kedia
Hi, am I audible?
Operator
Yes, you are.
Vishal Kedia
Hi, good evening. First question is on the personal care bit in India. So Sujith, can you just elaborate? Because the presentation slides talk about, you know, soaps have done well and so is the case with perfume fragrances. And I think it looks like the powder hair dye has actually been, you know, has been under pressure. Can you just talk elaborate a bit more on this?
Sudhir Sitapati
Yeah, I think there are two things. Bulk of our personal care business is soaps and that market muted despite gst. So while we have gained some market share, our growth has been pretty muted in soaps. Condom sexual wellness also has been quite muted and declined. It’s a small business. And hair color has had an okay quarter. Not a great quarter, but an okay quarter. I think there was some seasonality, impact of marriages, etc. So overall I would say a somewhat muted quarter only on our personal care business.
Vishal Kedia
Okay. And Sudhir, when you say India business, let’s say has grown by 10%. If home care and personal care have grown by 12 and 3% respectively, I think the other portfolio has grown like 75% which has added about 2.53 percentage points. Right. Can you just elaborate on what has happened there?
Sudhir Sitapati
I think firstly our home care business salience is increasing every quarter and it’s becoming bigger and bigger on the back of some of these things. So that is one. The second is there has been a lot of explosive growth globally on our air freshener business which we don’t capture. Indeed, next time onwards we’ll capture it. And so far it was a small number, but that as I take you through on Monday, we are just having very high growth on air fresheners globally, which is broadly we make in India and we export it from here.
And that has been the delta contributor there.
Vishal Kedia
Understood. And lastly on Indonesia, how confident are you about the turnaround given that there has been certain whatever. I understand inflationary pressures also in the economy. How Confident are you of the turnaround over there. And outlook also on Africa business for F27,
Sudhir Sitapati
See on Indonesia, I think even last quarter we had about 4% volume growth and this quarter also we had 4% volume growth. I mean in a steady state, if we can do 5 to 6 volume growth in Indonesia, this sales growth has to do with currency that may turn actually in Q1 the other way around. So I think revenue growth will now lead volume growth in Indonesia. So I think what we will get in Indonesia is kind of mid single digit volume, high single digit value going forward. As far as Africa goes, you know we are having a very strong performance in Africa.
I think as I said, one of the big drivers has actually been FMCG driven by Air Care in Africa. So revenues have gone up. That requires advertising spend. So we have kind of investing ahead of the curve in building FMCG in Africa. Our Africa business now is looking more and more like a conventional FMCG business to us.
Vishal Kedia
Okay. And just a follow up on Africa, you think constant given that the base has been high and the last few quarters have been quite good in Africa on growth as well as margins, do you think FY27 we should be mindful of the base given that, you know, the performance in the past few quarters and this quarter also constant currency growth has been somewhat. Okay. It’s the reported number which has been very good. Right. Because of the currency moves.
Sudhir Sitapati
Yeah. See I think in FY25 we had a very depleted performance in Africa. So the FY26 numbers come on a depleted base. I expect Africa performance to be quite strong because there are. And you know, again on Monday we’ll explain to you. There are some underlying drivers in FMCG which are driving bulk of the growth in Africa and those will continue to compound in FY27.
Vishal Kedia
Got it. Look forward to seeing you on Monday. Thank you.
Operator
Thank you. Next question is from the line of Mehrisha from Nomura. Please go ahead.
Mihir Shah
Hi sir, thank you for taking Sudhir. So when I look at your looking ahead para, you’ve highlighted the India business is placed to deliver consequently calibrated EBITDA margin. Given the context of the West Asia war and inflation that we are seeing, should one assume that what you’re indicating is that you will be able to hold up that 21.5% normative margin in 2425 on India business? Is that what this statement reads?
Sudhir Sitapati
To be honest, this quarter and next quarter I expect some pressure on EBITDA percentage margin but we are seeing upsides. On a variety of other areas we’re seeing pricing growth higher than what we thought we’d get. We are seeing in certain categories like laundry and household insecticide, a lot of pressure on locals. So overall I’m expecting lower margins till this oil remains at 100, 110, but higher revenue and kind of netting out at reasonably good levels. As far as EBITDA goes, I think it’s just, it’s just if this oil remains at $100 to $110, that’s what we expect and that too for a few months because it $10 as we had sent in the three note is not something that we can’t price up for over three, four months.
So it may take three, four months again for a little bit of a dip in percentage margins. But unlike in the case of very sharp palm oil prices where even If I have a 6, 7% inflation because of palm oil, it affects only one category and then that becomes really hard to take up. Prices in the case of crude oil, it affects all categories. So the same 6, 7% is spread out over every category. So while we may have a percentage gross margin lower than Q1, we are of course we are also lapping a weak competitor.
I think it will come back much sooner than it does when there is a palm oil crisis.
Mihir Shah
Understood. Got it. And again on the personal care front, just wanted to get a sense of now. You know, we had some tailwind of restocking in third quarter that seems to have normalized. How should one think about the growth of personal care from here on? Is the stability of haircare just because of the marriage. Marriage seasonal impact and. And the soaps are going to be remaining? Yes.
Sudhir Sitapati
I mean look, we didn’t have a backwater and hair color just a little lower than what we usually have. I think pricing growth will come into soaps pretty significantly going forward. So I do expect this personal care performance to improve.
Operator
I’m sorry sir, we are not able to hear you if you are speaking.
Sudhir Sitapati
No, I was saying that pricing is coming back in soaps more than what we thought to the various cost inflation both in soaps and in general personal care. So I do expect higher revenue growth than this in FY27 on going forward. Can you hear me?
Mihir Shah
Yeah. Thank you. Go ahead. And that’s all for my.
Operator
Thank you. Next question is from the line of Aditya Soman from clsa. Please go ahead.
Vishal Kedia
Yeah. Hi, good evening and thanks for the opportunity. So two questions. Firstly on home care, we’ve seen fairly strong growth on what was A tough base as well. So can you just maybe throw some light on what steady work is it just a broad, I mean the launch being pushed wider and acceptance and in similar vein as we sort of get into summer and this year there’s an expectation of an extended summer. Would that have any seasonal impact with the extended summer on the insecticide business?
Sudhir Sitapati
So I think quarter four was pretty good and broad based in terms of home care. All our businesses did well. Household insecticide, air freshener, fabric care, both in terms of top line and bottom line, they did well. I think going forward, if the summer is a hotter summer, last year was a cooler summer and actually the whole of last year cooler. I think soap volumes have been a bit muted in the overall category because of a sort of slightly cooler year. I think summer Q1 is typically a small quarter for HI.
So yes, it’s possible that the HI numbers aren’t as great as they should be. But then on the other hand there is a dynamic of local players not getting kerosene to make incense stick and so on. So there are some complicated dynamics going on between the weather and West Asia. So equally I’m expecting a better quarter in terms of soaps. So yeah, there are two dynamics going on here. I mean short point is there’s a weather dynamic in a West Asia dynamic, both of which are playing out positively and negatively.
I think in soaps is largely the weather dynamic is positive. In HI, the weather may be negative. Ectasia may be positive. Laundry also the West Asia thing may be positive.
Operator
Thank you. Next question is from the line of Avnish Roy from Nirvama. Please go ahead.
Vishal Kedia
Yeah, thanks. Two questions. My first question is on Mustaq and your other recent acquisition. Essentially in terms of the Raymond, what is the update? And going ahead in terms of outlook, how do you see that given these two scenarios you mentioned in terms of West Asia impact on the say the cost inflation and say the summer which is likely to be on the stronger side for these two businesses. How do you see this in terms of the outlook?
Sudhir Sitapati
So Abneesh, maybe that mustache question and the Raymond’s question I will take on Monday when you guys are here because we have some slides on how Muzta and Raymonds are doing. But let me answer because what we wanted to do was to use this call to really answer off Q4 questions and Q1 questions and kind of more portfolio questions. Answered it in Monday if that’s okay by you. But short point is we’re very happy with Mustach. I think we’re also quite happy with Paks. A little bit of we had early successes in sexual wellness which seem to have dried off, but good consistent volume growth on deodorants.
I think as I told you, the way we’re looking at the year, there’s a negative in terms of cost, there’s a positive in terms of middle distillate prices which is basically linear alkyl benzene and kerosene which are used in detergents and household insecticide. Those prices going up significantly and a lot of locals coming out of the from our business point of view, the positive of West Asia as far as weather goes, if the predictions of El Nino are right there will be Q1 will be a difficult quarter for HR to be a good quarter because when it’s hot and reasonably wet actually it’s reasonably good.
So Q2 and Q3 should be okay. Soap should generally be good. Indonesia does quite well during El Nino in general but you know, general consumption in monsoons are poor. I don’t know how Q4 will be but overall the last elinor I think we had was FY24 if I’m not mistaken and that turned out as a reasonably good year for us.
Vishal Kedia
So
Sudhir Sitapati
This is the sum of moving parts between West Asia, hotter summer and El nino.
Vishal Kedia
Understood. My second question is on soaps in Q4 Sudhir we have seen that in most of the FNCP categories GST has had some benefit. I do understand in SOAP local players is not very big number but if you could tell us from a compliance side at least is there some improvement because at least at 5% the degree of bypassing the system is much lower. So are you seeing some evidence of that? It may not translate to number as yet. And your optimism on SOAP volumes Recovery say in Q1, Q2 based on say Elmino etc.
Is that the main reason or because of inflationary condition you and the market leader will gain market share? Is that the main reason?
Sudhir Sitapati
Two, three questions you’re asking. I mean on the second question on why I’m recently bullish is last year pretty cold summer, as you know in various beverages categories etc. And ice cream categories and this one is expected to be the other way around. On your second question on the impact of gst, to be honest the overall impact on GST has been quite good. I think the consumption we’ve seen results. We’re also quite happy with 8% volume growth in India. So I mean the overall consumer sentiment certainly seems to have improved after GST and that is benefiting a Lot of discussionary categories like laundry, liquid and air care which may not have had a direct reduction in GST prices.
As far as soaps itself goes, it doesn’t seem to have shown, at least for us. And from what I’m able to read from reported results, significant improvement in volume, unlike some GST categories. I think categories which are slightly under penetrated or which have heavy locals but certainly underpenetrated categories really have benefited from the GST price. But soaps and a few other universally penetrated categories, the impact has been limited. On the GST though we passed on all the benefits to consumers
Vishal Kedia
Because hair oils are seeing very good benefit and that’s also very well penetrated. I don’t
Sudhir Sitapati
Know whether it’s hair. Is it premium?
Vishal Kedia
Yeah, premium has also grown strongly. Baho has grown very strongly.
Sudhir Sitapati
That’s what I also believe that it’s a premium phenomenon, you know where so when you have a very premium brand when prices come down. So other categories, you know, there are other penetrated categories like oral, etc. But I don’t know what the impact has been on gst.
Vishal Kedia
And last question, in terms of the pet food, any update or you would want to share that in the analyst day given it’s a big sector from a longer term but may not be that relevant currently. So any update on that? No,
Sudhir Sitapati
I think, you know we are in the question of product market fit and getting increasingly convinced we have it. We’ve set up a state of the art plant in Narsik and we’ve shipped out volumes from there. So the more we understand this category, firstly it’s going to be a long burn. There’s going to be a lot of feel that and I’ll again share this on Monday. But we do feel that this is a category that has a good odds for us to really become a big business in a few years time. I think we may have entered this at the right time.
Vishal Kedia
Right. One last follow up on palm oil. So the feedback given was palm oil and crude oil. The linkage has been broken but we have seen fantastic linkage this time also. So your thought and second on the soap new formulation which number one player has taken, what is the current stance you have given? There is a big palm oil inflation. It makes much more sense now than ever. So what will be your stance now?
Sudhir Sitapati
See I think palm oil inflation after this, the way to look at this is crude went up from give or take $70 let us say to $100 which is a 40, 50% increase in crude. Palm has gone from 4,000 myr to about 4,500 myr which is a 10 11% increase in palm. Some of the middle distillates which is kerosene and linear alkyl benzene which is basically stuff that competes with jet fuel. Costs have more than doubled. So in the scheme of things you know palm oil of 10% is not A. It’s not like a deal breaker the way like you know 20, 25% is.
It is of course going to be not. I mean it’s okay in the overall scheme of things. As I said we are anticipating at $100 Brent and 4,500 MYR palm oil which still seems to be roughly where we are kind of 7 to 9% inflation which between costs and some cuts and pricing we should be able to recover. As far as the formulation on competitive is not proper for me to comment on that. I think it is important to say that we are on our path on soaps. I think we are happy with the margins that we have on soaps a little bit.
The volume in the soap category is a little lower than what it’s typically been. We wonder whether it’s because of a colder last structural is going on. But it’s not an alarming change in volumes either, you know. So I think there’s a little bit of wait and watch in soaps. It doesn’t seem to be from what I see a game changer one way or the other for FY27.
Vishal Kedia
Sure. Thank you. That’s all for myself,
Operator
Thank you. Next question is from the line of Sirdesh Deshma from IFL Capital. Please go ahead.
Vishal Kedia
Hi sir, this is Percy Pantaki here. I just wanted to understand in light of the inflation while there are going to be moving parts in terms of the percentage margin and the top line if I just look at the rupees crore in terms of the growth YY of the EBITDA level. Do you think because of all these events there is any need for us as analysts to relook at the rupee million EBITDA figure or you think you will be able to sort of manage what you had in mind before the war started out?
Sudhir Sitapati
I mean we’ll give you guidance on Monday but at this current stage this is not an alarming inflation because it is spread out over all categories evenly versus a typical 20, 25% palm oil inflation which then one category takes and can’t price up and there’s a limit to what and you can’t really take prices on other categories and palm oil inflates so I mean, it’s hard. Exactly. Given you can see, because there are two variables we’re playing with here. I mean, there’s one fundamental variable which we’ll talk on Monday, which is we believe our business is on a compounding effect of couple of our categories like hair care and actually some parts of HI and laundry, etc.
So that one underlying variable where we just see volume momentum building quarter after quarter, there’s another compounding factor of a potential El Nino and a third one on West Asia. These are the three dimensions we’re looking at given. So that does put a little bit more difficulty. But I would not say that this is an alarming number as things stand today.
Vishal Kedia
Got it. Second question on soaps, typically, what happens in the soaps category is that when there is a price increase, there is a significant and measurable sort of volume impact of that price increase. Do you think that this time around that volume impact will not happen? Because what has happened is because of the gst, the prices have got cut and now because of inflation, they will go back again. But if you see point to point over the last five, six months for the consumer, the price would not have changed at all.
It goes down and then comes up in a period of less than half a year or so. So from a consumer point of view, if he’s seeing that the MRP is roughly unchanged, does that mean that there will be no volume backlash and whatever pricing you take will be purely incremental to the top line?
Sudhir Sitapati
I think so. I think in fact it may be the other way around, which is GST went from 18 to 5. As I told you, palm oil is up 10%. We may not take up the full as palm oil is not the only thing we may put into soaps. So the chances are the price increase we take will be less than the GST benefit that we passed on to consumers. So if any anything compared to October, the consumer will see a pre October, pre gst. In fact, we slightly lower prices of soaps. Though our realization will improve because the GST doesn’t obviously affect our realization.
Vishal Kedia
Yeah, exactly. That’s what I was saying. Okay, got it. We’ll catch up on Monday.
Operator
Thank you. Next question is from the line of Hareet Kapoor from Investec. Please go ahead.
Vishal Kedia
Good evening. You mentioned, you know, some price increases already in place. So any indication on, you know, what’s the kind of range of price hikes on a weighted average basis that have already gone through the market?
Sudhir Sitapati
I mean, in soaps we have taken our prices by 5% in detergents we have taken up prices again by 6 or 7%, which is now a meaningful part of our business, maybe 7%. In household insecticide we have taken up prices again by 4, 5%. So that’s the kind of range.
Vishal Kedia
Got it. So it’s already a meaningful price increase which has gone into the market. Yeah, I mean like
Sudhir Sitapati
Some of those price increases just happened in April. In fact all of them just happened, happened in April. So they’re not reflected in the results of last quarter.
Vishal Kedia
And the second question is in Indonesia, you know, you know, you’ve slowly kind of been building back the margin also, you know, this quarter again, you know, at 28% plus operating margin. Just wanted to get your sense on, you know, whether, you know, the issues on competitive intensity etc. Are kind of completely behind us because it doesn’t, it reflects like that at least in your margin delivery over the last few quarters.
Sudhir Sitapati
Yeah, I think this margin delivery has a little bit to do with revenue recognition which in Indonesia actually we already did a round last before this expert advisory committee recommendation came up. We already did some reclassification. So broadly Indonesia margins are where they are. It’s not 28 comparatively. And then quarter four also we generally have a spike because it’s the month of laboram which is Ramadan there, etc. So I would say Indonesian margins are steady. Volumes are back to being steady.
Two quarters in a row of four, probably potential to go to five to six. But I really do think that some of the businesses which we’ll talk about again on Monday, which is Africa, international business, Even Latin America, etc. We may be in the cusp of much higher growth there.
Vishal Kedia
Last was bookkeeping, just a sense on what your tax rate outlook is for fiscal year 27. So
Sudhir Sitapati
The bank CPR is likely to remain the same as this year. The one offs which you’ve taken and we’ve clarified separately.
Operator
Does that answer your question? Yeah.
Vishal Kedia
Yeah. Thank you.
Operator
Thank you. Next question is from the line of Avais Bakshi from Sundaram Mutual Fund. Please go ahead.
Vishal Kedia
Hi
Mihir Shah
Sudhir and team. Am I
Vishal Kedia
Audible?
Sudhir Sitapati
Yes.
Vishal Kedia
There’s two questions from my side specifically to your Godrej FAB portfolio. Firstly, in terms of your ARR, where are we tracking versus the 500 crore exit expiration and a subpart to it would be the south and north south split of that current ARR number. And secondly, at what revenue scale does the FAB portfolio turn EBITDA positive for us at a bank level? I think Those are the two questions. From AM. Thanks.
Sudhir Sitapati
I think our ARR is about on GSV terms, about 500 crores in quarter four and maybe 450 crores in NSV terms. So it’s very, I mean we of course internally look at our gross sales values, about 500 crores. We’re a very, very fast scaled brand. Every quarter is kind of doing better than the previous quarter. It’s also kind of broken even in quarter four. Again there’ll be some issues in quarter one because laundry does get pretty badly affected by crude. But we have a good solid path to profitability on fab.
And look, we just think that the sky is the limit. This is a 4000 crore market in India. Very rapidly we’ve come from nowhere to becoming 500 crores. And I mean we feel this market is a hyper growth market and we have a lot to gain and very little to lose here.
Vishal Kedia
Sure. And just a follow up here. Would it be fair to assume that the 500 crore growth is more or less to do with south more than 50%? No, no. Saab
Sudhir Sitapati
Is now across the country doing extremely well in most states. North Maharashtra, it has gone significantly beyond being a south play.
Vishal Kedia
I think south is
Sudhir Sitapati
Leading it. So everything is bigger. I mean we started there in the south but this is a national player. We’re very excited with the scale opportunity this provides us in the future.
Vishal Kedia
So thanks for taking my questions. That’s it. Thank you.
Operator
Thank you. Next question is from the line of Aditya Vikram from DB Securities Private Limited. Please go ahead.
Vishal Kedia
Hi Sadheer. Thank you for taking my question. So if I understand it correctly we will see margin pressures over the next two quarters because of wherever the crude Is that correct interpretation of what you say?
Sudhir Sitapati
I think percentage margins we will absolute EBITDA also. We may or may not but we will try and see where we can recover because we do expect both pricing growth and some kind of share growth in a few categories.
Vishal Kedia
Okay, thanks for that. However, just one thing Sudhir. It has been a couple of quarters now where if one category performs, something else doesn’t and specifically on personal care things are not going as planned. So what is the long term strategy? Because it does not. The roadblocks now or the blockers which we will see in next few quarters will only amplify anything which doesn’t perform. So what is the thought on that front?
Sudhir Sitapati
I mean look, you know in every quarter you will have some category performing. I think you have to look at the overall numbers. You know in India delivered 8% volume, 10% sales growth and 18% EBITDA across the world we delivered 11% revenue and 10% EBITDA. There will always be some category in some quarter that doesn’t do well. I think as long as most geographies are range bound and more then one should be okay with it because these things, they do change a little bit. So the personal care number is a bit lower than what we thought.
But this three can go to seven, eight. I mean personal care, structurally it is slightly slower growing business for us than home care because of the weightage of soaps. But I’m not unduly worried about personal care. It’s at the lower end of what it should be. It may be a little bit higher than this. On the long term we do expect our home care businesses to really grow much faster. And so one can expect in the long term our home care businesses to grow faster than our personal care businesses just because of the weightage of soaps.
But it’s not one of those things that if you have one part of business doing well, another part doing badly and the overall business doesn’t do well, then it’s a problem. But if the overall business is, the two big numbers for us are India UVG, which at 8 is good, and overall EBITDA, which at 10 is okay. So I guess that’s how we look at it.
Vishal Kedia
Okay, and just one. Well, basically on personal care itself, right? You have been bullish in your commentary for the past couple of quarters on soap doing well or so picking up, but it is not doing as well as we thought and it’s impacting the overall growth if you look at it because the sheer weight of soaps, right? Is there any plan from the management side to increase the marketing spends or increase the awareness or is there some sort of a strategy? Because this apparently is one pain point which has been there for the past couple of quarters at least if I can recollect it properly.
So if there is any strategy around this that we will spend more on the marketing side to enhance the visibility or enhance the performance.
Sudhir Sitapati
There are a couple of things on soaps. One is last year we genuinely think the temperatures affected the overall category volumes because when we look at the data it is a bit anomalous. FY24 was a good year in terms of volumes. FY25 was okay, FY26 in a couple of months. So there is a temperature impact there and also there is a movement of soaps to liquids. Again, we talk about it on Monday. The biggest thing that we have to do is to look at the overall skin cleansing business. We are having a lot of green shoots on Synthol body wash.
We are doing extremely well on Magic Hand Wash. And now with Mostaq we have an acquisition in face wash which is also kind of very promising. So really we have to change our length from soaps to cleansing and look at the growth there.
Vishal Kedia
But nothing more to do on the marketing spends or visibility or anything else. Right. It’s just
Sudhir Sitapati
Really to kind of gain market share consistently. So not to lose market share. But you know, the growth of the market is the growth of the market. So between cleansing between other categories, we’ll have to compensate. And as we show you on Monday, there are some categories which are on hyper growth and those are compounding every quarter. So the impact of that is becoming bigger and bigger every quarter. Okay.
Vishal Kedia
Okay, thanks so much.
Operator
Thank you. Next question is from the lineup, Kunal Vora from BNP Paribas. Please go ahead.
Vishal Kedia
Thank you. Question on margins. In the previous two instances when good cost $100 in saw 200 with concluded margin contraction. Your comments indicate that this time the margin contraction may not be meaningful. What’s different this time? Is there a change in business for raw material mix or is it palm oil already high in the days or GST rate cut is making it? Any comments on this?
Sudhir Sitapati
I mean a combination in the palm oil hike so far is a 10% palm oil hike in 22 and all it had gone up 20, 25%. So that is not the extent of palm oil inflation we’re seeing today. And I think the relative salience of soaps is slower than what it used to be because we are now becoming a larger and larger home care business. So as a combination of all these, I still expect, as I told you, lower than normative margins on Q1 and probably Q2, though it may not be very different from what it was last year.
But I think that’s the reason.
Vishal Kedia
Understood against 50% increase in RFP cost, is there more?
Operator
I’m sorry to interrupt. Sorry, that question wasn’t
Vishal Kedia
Clear. The question was on detergents. The raw material cost has gone up meaningfully 50%.
Sudhir Sitapati
So
Vishal Kedia
Wanted to understand if there is more pricing.
Sudhir Sitapati
I mean, yeah, we will, we will kind of, you know, do this in a couple of steps. We are of course, you know, committed to pricing it. Right. But one is, you know, we’re still nowhere near the market leaders in this category. So we will be led by the market leader.
Vishal Kedia
Understood. Lastly on hi. Like Molecule has been around now for more than a year. How has it affected the HI category, market share, growth, acceleration or like what kind of yields you’ve seen, what kind of traction you’ve seen, both in case of incense as well as in case of LV’s. And let’s say, do you, do you expect continued acceleration, continued gain from this or now it’s in the days.
Sudhir Sitapati
Yes. Again, we talk about this in mundane detail, but you know, having looked at our numbers now for a few quarters, we conclude that in general RNS has worked better in some places than others, but overall it has worked and we feel reasonably confident that from a kind of zero to low single digit growth category, household insecticide is at least a high single digit category. And you know what a period of time can compound into a double digit category. So we do feel that the household insecticide problem that plagued us for 10 years is probably behind us.
Though of course there will be, whether you like it or not, a volatile category in terms of season. So there will be ups and downs in seasons. But that entire mean is I think going to change pretty meaningfully. That’s what we’ve been observing because we’ve been observing the spread over season. We have a seasonality index on an opportunity. Right. And we’ve been observing a meaningful variance on our total business over seasonality since we launched rnf. I mean it’s taken some time, bit of time to happen, but we do feel one of our main themes on Monday is to show you in detail on why we believe the HI issues may be behind us.
Vishal Kedia
Understood, thank you. That’s it for me.
Operator
Thank you. Before we take the next question, a reminder to all the participants. If you wish to ask a question, please press star and 1. The next question is from the line of Nihal maher jam from HSBC. Please go ahead.
Vishal Kedia
Good evening. I had two questions. The first was on soaps. Again that in Q3 you commented that you know, the package growth was better than the volume growth. So just trying to understand that with the full impact of the grammar increase sort of playing out in Q4, what led to maybe the growth not accelerating versus Q3. Was it that in the packet of the unit growth sort of soil deceleration,
Sudhir Sitapati
It’s still sitting on very high grammage growth last year at the same period. See what happened in soaps is between Q4, Q1 and Q2, basically Q4 of FY24, sorry, FY25, Q1 and Q2 we’ve had very sharp grammage cuts. So we’re still lapping basis where our grammage on small packs is Significantly lower than what it was in Q4 of last year. So one of the reasons why volumes are still a little bit muted on large packs, they’re better than they are on small packs.
Vishal Kedia
Even adjusting for the GST, the grammar for the small packs and more is 40.
Sudhir Sitapati
Yeah, yeah. Because the kind of hike that we took in or drops, we took in soaps between Q3 of FY25 and Q2 of FY26 when palm prices shot up, if I’m not mistaken, for example, gold is number one. 10 rupees went from something like 55 grams to 40 grams and we took it back up TO I think 46 or 47. So it still a good 15, 20% lower than what it was last year.
Vishal Kedia
Understood. That’s okay. I’m sorry. Nihal,
Operator
Can you use your handset mode please? You are not audible properly.
Vishal Kedia
Sorry for that. Is this better?
Operator
Yeah. Please proceed. Thank you.
Vishal Kedia
So did you allude to the individual components of RM of how they’ve inflated? Whether it is LAPR for but on a blended basis, what is the inflation we are at present facing for the company as a whole?
Sudhir Sitapati
I think we put that out in our 7 to 9% is what we’ve seen.
Vishal Kedia
Even on the spot prices.
Sudhir Sitapati
Even on the spot. I mean like spot is changing every day, but even on an average, I mean spot price, let’s just say at a 100 to 105 and 4500 QPO at spontaneous.
Vishal Kedia
Got that. And there’s one final question on fab. If I heard you right, you mentioned that obviously the pricing choices that you plan to take will be more determined by how the market reacts rather than how the RM sort of behaves.
Sudhir Sitapati
Yeah. Yes. I mean, see, when we are leaders, we lead price. When we are followers, we have to follow price.
Vishal Kedia
Thank you so much.
Operator
Thank you. Next question is from the line of Avi Mehta from Macquarie. Please go ahead.
Vishal Kedia
Yeah. Hi Sidhi, thanks for the opportunity. You know, just at one basic question and most of the others have been answered, you know, while you’re seeing margin under stress over the next coming quarters, you know you do have price hikes in such a scenario. Do you see consolidated EBITDA growth also following a similar trajectory of margin that is moderating from 4, 3 levels in the process or how should I see that?
Sudhir Sitapati
Yeah, I think so. Because of course India gets hit the most. But I think the same principle will be there percentage and we will have absolute EBITDA margins are quite high. Okay, perfect. That’s awesome. Thank you very much.
Operator
Thank you. Next question is from the line of Aditya Vikram from DB Securities. Please go ahead.
Vishal Kedia
One just follow up. You are ludio that you will take some nice Harry and you have already taken some over the last two quarters, right? I just wanted to understand in these specific categories right now, taking a price high, are you seeing some sort of a price indelacity or are you seeing some sort of a drying up on volume Based on whatever we have done so far,
Sudhir Sitapati
I don’t expect drying up on volumes to be honest. Because I told you, you know I’ve seen a couple of these hyperinflations on crude before. There is in there are market share gain versus locals in some categories you get. So maybe volumes will be a little lower than what we wanted at the beginning of the year. Maybe revenue growth will be a little higher than what we thought we’d get at the beginning of the year. Maybe EBITDA will be as things stand, slightly lower than what we thought but still pretty good.
Or maybe it will be where it is, but that’s what I’m anticipating at current costs. Okay, thank you. Appreciate it.
Operator
Thank you. That was the last question for today. I now hand the conference over to Mr. Vishal Kedia for closing comments. Over to you sir.
Vishal Kedia
Thank you everyone. We hope we have been able to answer all your queries. In case of any further queries, please reach out to us on our IR contact details. Again, I would like to invite you all to our analyst investor meet on Monday and we hope to see you there. Thank you and good evening.
Operator
Thank you very much on behalf of Godrej Consumer Products Ltd. That concludes this conference. Thank you all for joining us today. And you may now disconnect your lines.