Godrej Industries Reports Q2 Profit Drop Despite Strong Chemicals and Real Estate Performance
Despite a 4.7% rise in revenue, Godrej Industries' Q2 profit declined by 16% due to higher input costs and margin pressures. The chemicals and real estate segments drove topline growth.
Godrej IndustriesQ2 ProfitChemicalsReal EstateEbitdaReal EstateNov 11, 2025
EBITDA 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 significant decline was primarily due to cost inflation and a high base effect.
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. This strong performance underscores the company's strategic focus on expanding its international footprint and leveraging global demand.
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., reinforcing its commitment to expanding its portfolio and meeting the growing demand for residential properties.
Meanwhile, 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. However, the personal care segment remained impacted by GST transition effects, which have posed some challenges in maintaining consistent growth.
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. On the downside, crop protection revenues fell due to weaker demand, while the dairy segment remained broadly stable with improving contribution 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. This positive market reaction suggests that investors remain confident in the company's long-term growth prospects, despite the short-term challenges.
Frequently Asked Questions
What was the main reason for the decline in Godrej Industries' Q2 profit?
The main reason for the decline in Godrej Industries' Q2 profit was 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 revenue jump 29% year-on-year, 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 sq. ft. The company also added four new projects with an estimated saleable area of 5.82 million sq. ft.
How did Godrej Consumer Products (GCPL) perform in Q2?
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. However, the personal care segment remained impacted by GST transition effects.
What was the market reaction to Godrej Industries' Q2 results?
Shares of Godrej Industries closed 0.4% higher at ₹1,065 on the NSE on Monday, ahead of the results announcement, indicating that investors remain confident in the company's long-term growth prospects.
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