Godrej Industries Q2 Profit Dips Despite Strong Chemicals and Real Estate Growth
Godrej Industries reported a 16% drop in Q2 profit to ₹242 crore, despite robust growth in chemicals and real estate segments. Higher input costs and margin pressures were the primary reasons for the decline.
Godrej IndustriesQ2 ProfitChemicalsReal EstateEbitdaReal Estate NewsNov 11, 2025
The company's EBITDA plummeted by 76.5% to ₹134.7 crore from ₹573.9 crore a year ago, with operating margins narrowing to 2.7% from 11.9%. The significant margin pressure was primarily attributed to cost inflation and a high base effect from the previous year.
The chemicals division witnessed a 29% year-on-year increase in revenue, largely due to robust export growth of nearly 30%. Exports now account for 27% of the total segment sales, highlighting the division's growing international footprint.
In the real estate sector, Godrej Properties recorded a 64% rise in booking value to ₹8,505 crore. This surge was driven by the sale of over 4,500 homes, spanning 7.14 million square feet. The company also added four new projects, with an estimated saleable area of 5.82 million square feet, further solidifying its position in the market.
Godrej Consumer Products (GCPL) reported steady domestic growth, driven by strong performances in household insecticides, air fresheners, and the continued momentum of its hair colour and fabric care categories. However, the personal care segment was affected by the transition to the Goods and Services Tax (GST).
Godrej Agrovet delivered record quarterly volumes in its animal feed segment, while its vegetable oil business experienced stellar year-on-year growth, backed by higher realisations of crude palm oil and palm kernel oil. On the downside, crop protection revenues declined due to weaker demand, and the dairy segment remained broadly stable, with improving contributions from value-added products.
Shares of Godrej Industries closed 0.4% higher at ₹1,065 on the NSE on Monday, ahead of the results announcement. Despite the profit decline, the company's diversified portfolio and strong performances in key segments indicate a resilient business model capable of navigating challenging market conditions.
Frequently Asked Questions
What is the main reason for Godrej Industries' Q2 profit decline?
The main reason for Godrej Industries' Q2 profit decline is higher input costs and margin pressures, which offset the healthy growth in its chemicals and real estate businesses.
How did the chemicals division perform in Q2?
The chemicals division saw a 29% year-on-year increase in revenue, driven by robust export growth of nearly 30%, which now accounts for 27% of total segment sales.
What was the performance of Godrej Properties in Q2?
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 square feet. The company also added four new projects with an estimated saleable area of 5.82 million square feet.
How did Godrej Consumer Products perform in Q2?
Godrej Consumer Products reported steady domestic growth, led by household insecticides, air fresheners, and the continued momentum of its hair colour and fabric care categories. However, the personal care segment was impacted by the GST transition effects.
What was the performance of Godrej Agrovet in Q2?
Godrej Agrovet 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. However, crop protection revenues fell due to weaker demand, and the dairy segment remained broadly stable.
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