How Are Dabur and Godrej Consumer Shares Expected to Perform in Q1 FY27?

Synopsis: Leading FMCG companies are expected to report a strong Q1 FY27, with brokerages seeing healthy revenue growth, improving demand trends, and upside potential of up to 40 percent despite near-term margin pressure.

India’s fast-moving consumer goods (FMCG) sector is expected to deliver a healthy performance in Q1 FY27, supported by improving consumer demand, stronger rural consumption, and steady growth in overseas markets. Although higher raw material costs may continue to pressure margins, companies are expected to benefit from healthy volume growth, selective price hikes, and ongoing cost-saving measures.

Against this backdrop, several brokerages expect leading FMCG companies to report strong quarterly earnings and have reiterated their positive outlook. Revenue growth is likely to remain healthy across domestic and international businesses, while margins are expected to recover gradually over the rest of the financial year as input cost pressures ease.

With a market capitalization of Rs 79,900 crore, Dabur India Ltd’s shares closed at Rs 450 per share, up by 1.36 percent from the previous close, and on the other hand, with a market capitalization of Rs 1,12,641 crore, Godrej Consumer Products Ltd’s shares closed at Rs 1,100 per share, up 2.22 percent from its previous close.

Dabur India Ltd

Founded in 1884 by Dr. S. K. Burman in Kolkata, Dabur India Limited is one of India’s largest FMCG and the world’s largest Ayurvedic and natural healthcare companies. Headquartered in Ghaziabad, Uttar Pradesh, it operates across 120+ countries, manufacturing health supplements, personal care, and food products

Nomura on Dabur

Nomura has maintained its ‘Buy’ rating on Dabur with a target price of Rs 600, implying an upside of up to 35 percent from the previous close. The brokerage expects the company to deliver double-digit consolidated revenue growth in Q1 FY27, marking the first time in 11 quarters that sales growth has returned to double digits. It also expects double-digit growth in profit after tax (PAT) during the quarter.

The brokerage expects healthy performance across most of Dabur’s business segments. The Home and Personal Care (HPC) and Foods businesses are likely to post strong growth, while the Healthcare and Juices segments are expected to see sequential improvement. Dabur’s international business is also expected to make a strong comeback, supporting the company’s overall growth in the quarter.

Nomura believes Dabur’s current valuation remains attractive, with the stock trading at 32.9 times its estimated March 2028 earnings, which is around one standard deviation below its 10-year average valuation. The brokerage sees this as a comfortable entry point, supported by improving business momentum and better earnings visibility.

Macquarie on Dabur

Macquarie has maintained a ‘Neutral’ rating on Dabur with a target price of Rs 470. The brokerage expects the company’s India business to perform largely in line with expectations, while the international business is likely to deliver a positive surprise. It also expects operating margins to remain stable, with profit after tax (PAT) projected to grow at a double-digit pace in Q1 FY27.

Macquarie noted that the sequential recovery in demand during the quarter should support Dabur’s near-term performance. However, it remains cautious about the outlook for rural demand, citing potential risks from El Niño-linked weather conditions, which could affect consumption trends in the coming quarters.

Morgan Stanley on Dabur

Morgan Stanley has assigned a target price of Rs 425 for Dabur. The brokerage expects the company to report double-digit consolidated revenue growth of around 10 percent in Q1 FY27, compared to 7 percent growth in Q4 FY26. It also expects EBITDA margins to remain stable at around 19.6 percent, while profit after tax (PAT) is likely to increase by 13 percent year-on-year.

The brokerage expects Dabur’s domestic business to continue its steady performance, with revenue growth of around 9 percent, improving from 8.5 percent in Q4 FY26. It also expects the international business to post high-teen growth in rupee terms, supported by better demand across key overseas markets. Morgan Stanley added that rural demand continues to outperform urban demand, a trend that has remained intact.

Looking ahead, Morgan Stanley said the management remains optimistic about consumption trends. It expects demand across international markets to improve further, while both rural and urban markets in India are likely to sustain their growth momentum, supporting the company’s performance in the coming quarters.

Godrej Consumer Products Ltd

Godrej Consumer Products Limited is an Indian multinational fast-moving consumer goods company headquartered in Mumbai, India. Part of the 127-year-old Godrej Group, it specializes in emerging markets, serving over 1.1 billion consumers across 80+ countries with products spanning home, hair, and personal care.

Nuvama on GCPL

Nuvama has maintained a ‘Buy’ rating on Godrej Consumer Products with a target price of Rs 1,505, implying an upside of nearly 40 percent from the previous close. The brokerage expects Q1 FY27 consolidated revenue to grow 17.1 percent year-on-year, while EBITDA is likely to rise 12.4 percent, supported by healthy demand across domestic and international markets.

Nuvama expects the India business to post 8 percent volume growth and 12 percent revenue growth, driven by steady demand in the home care and personal care segments. International operations are also expected to remain strong, with 15 percent revenue growth, Indonesia delivering 10 percent volume and 15 percent revenue growth, while the GAUM business could report around 20 percent sales growth.

The brokerage expects higher raw material costs to keep margins under pressure in the near term, with gross margin and EBITDA margin declining modestly in Q1 FY27. However, it expects margins to recover through FY27 as input costs ease, helped by calibrated price hikes, cost-saving measures, media optimisation, and steady volume growth.

Macquarie on GCPL

Macquarie has maintained its ‘Outperform’ rating on Godrej Consumer Products with a target price of Rs 1,250. The brokerage expects the company to deliver high-teen sales growth and consolidated EBITDA growth, ahead of its low-double-digit FY27 guidance, supported by strong performance across both India and international markets.

The brokerage expects broad-based double-digit sales growth in India, with high-single-digit volume growth, while the Indonesia business is likely to report better-than-expected mid-teen sales growth. Macquarie also remains optimistic about the company’s outlook for FY27, expecting it to exceed its guidance on select operating metrics as demand remains healthy across key markets.

Nomura on GCPL

Nomura has maintained its ‘Buy’ rating on Godrej Consumer Products with a target price of Rs 1,300. The brokerage expects the company to report high-teen consolidated revenue growth of around 16–17 percent year-on-year in Q1 FY27, exceeding its full-year guidance of double-digit growth shared during its annual investor meeting in May.

According to management, the strong revenue performance is expected to be driven by high-single-digit volume growth across the business. Nomura also expects consolidated EBITDA growth of around 14 percent year-on-year, which is higher than double digits and ahead of the company’s full-year EBITDA growth guidance.

The brokerage noted that higher input costs are likely to keep margins under pressure during Q1 FY27. However, management expects the impact to reduce over the rest of FY27, supported by various cost-mitigation measures. As a result, the company has maintained its full-year guidance, reflecting confidence in a gradual recovery in margins while sustaining healthy revenue and earnings growth.

Conclusion: Brokerage views suggest that both Dabur and Godrej Consumer Products are likely to report a strong start to Q1 FY27, supported by healthy domestic demand, improving international performance, and steady volume growth. While higher raw material costs may weigh on margins in the near term, most brokerages expect profitability to improve as the financial year progresses.

Among the two, Godrej Consumer Products has received the most bullish target prices, with Nuvama seeing up to 40 percent upside, while Dabur has a maximum upside potential of 35 percent, according to Nomura. Overall, brokerages remain positive on both FMCG companies, citing improving demand trends, strong execution, and better earnings visibility.

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