Godrej Industries Profit Plunges 16% as Costs Offset Chemicals and Real Estate Growth

In the quarter ended September 2025, Godrej Industries Ltd. reported a 15.8% year-on-year decline in consolidated net profit to ₹242.4 crore, compared to ₹288 crore in the same period last year. This drop in earnings came despite a 4.7% rise in revenue to ₹5,032 crore, supported by solid performances in the company's chemicals and real estate verticals.

The company's EBITDA, however, dropped sharply by 76.5% to ₹134.7 crore from ₹573.9 crore a year ago, with operating margins narrowing to 2.7% from 11.9%. This was primarily due to cost inflation and a high base effect.

On a positive note, the chemicals division saw revenue jump 29% year-on-year, led by robust export growth of nearly 30%, which now accounts for 27% of total segment sales. In the real estate arm, Godrej Properties posted a 64% rise in booking value to ₹8,505 crore, driven by the sale of over 4,500 homes spanning 7.14 million sq. ft. The company also added four new projects with an estimated saleable area of 5.82 million sq. ft.

However, Godrej Consumer Products (GCPL) reported steady domestic growth, led by household insecticides, air fresheners, and the continued momentum of its hair colour and fabric care categories, though personal care remained impacted by GST transition effects. Godrej Agrovet also delivered record quarterly volumes in its animal feed segment, while its vegetable oil business saw stellar year-on-year growth backed by higher realisations of crude palm oil and palm kernel oil.