India's Godrej Consumer sees up to 9% cost hit if crude, palm oil prices stay high (updated)

Godrej Consumer Products

06/04/2026 16:03

Recasts lede, adds details throughout

April 6 (Reuters) - India's Godrej Consumer Products GOCP.NS said on Monday it expects costs to rise 6% to 9% if Brent crude holds at $100 to $110 a barrel and palm oil prices hover between 4,500 and 4,800 Malaysian ringgit a metric ton.

Recent gains in both commodities have been driven by the ongoing Middle East conflict.

Palm oil derivatives, a key input for soaps and personal care products, along with crude-linked packaging and freight costs, are major expenses for Indian consumer companies, which were only beginning to see a recovery in demand following tax relief measures introduced late last year.

Brent crude futures rose to $109.13 on Monday while Malaysian palm oil futures were at $1,195.53 (4,812.01 ringgit).

Consumer companies typically hike prices or cut costs to protect margins from higher input costs.

The maker of Cinthol soaps and Goodknight mosquito repellent said it expects to offset the impact of cost increases through price hikes and other savings measures, without providing too many details.

The company expects a close-to-double-digit growth in consolidated revenue and core earnings in the fourth quarter, driven by steady domestic demand, it said.

For the third quarter, Godrej's costs had risen 6.3% to $361.49 million.

On Monday, it also said it expects to meet its original bottom-line plans for fiscal 2027 while stepping up revenue growth even if costs stay at current levels, but warned of revisions if input costs rise further.

Crude-led inflation is likely to persist into the first half of fiscal 2027, it said, though policy support, including tax relief measures, could partially offset the impact.

Peer Dabur DABU.NS on Friday said growth in its international business will be in the low single digits due to the Middle East conflict.

($1 = 4.0250 ringgit)

($1 = 93.0600 Indian rupees)

 (Reporting by Chandini Monnappa and Mridula Kumar in Bengaluru; Editing by Jonathan Ananda and Sahal Muhammed)

 ((Chandini.M@thomsonreuters.com; https://www.linkedin.com/in/chandini-monnappa-8a37b013b/;))