Godrej Consumer Products Dividend ₹5 (FY27) — Record Date, Yield, History

Godrej Consumer Products Limited (NSE: GODREJCP, BSE: 532424) has declared an interim dividend of ₹5 per equity share — a headline 500% on the ₹1 face value — for the financial year 2026-27. The declaration followed the Board meeting held on 29 October 2026. The record date is 4 November 2026 and payment will be made on or before 27 November 2026. On the current market price of about ₹814 (Screener, 02-Nov-2026), this single interim works out to a real yield of just 0.61%, while the trailing 12-month payout of ₹20 gives roughly 2.46% — a reminder that the eye-catching "500%" is calculated on face value, not on what you actually pay for the share.

Godrej Consumer Products Limited is one of India's largest fast-moving consumer goods (FMCG) companies, with a portfolio spanning home care, personal care and hair care. Its best-known brands include Good Knight and HIT (household insecticides), Godrej Expert and Godrej Professional (hair colour), Cinthol (soaps) and Godrej Aer. Beyond India, the group operates across Indonesia and Africa (including the "Strength of Nature" business). For the half year ended 30 September 2026, India contributed about ₹5,211 Cr of the ₹8,639 Cr consolidated revenue (roughly 60%), with Indonesia, Africa and other geographies making up the balance. The company is professionally managed and part of the Godrej group, with a market capitalisation of approximately ₹83,300 Cr. This dividend analysis of Godrej Consumer Products focuses on the mechanics and sustainability of the latest interim payout, not on any buy or sell view.

On a consolidated basis, Godrej Consumer Products reported H1 FY27 revenue of ₹8,638.56 Cr, up 18.7% year-on-year, and profit after tax of ₹1,027.44 Cr, up 12.7%. For the full FY26, consolidated revenue was ₹15,177.90 Cr with PAT of ₹1,861.47 Cr and basic EPS of ₹18.19. A notable detail: profit is growing slower than revenue — segment operating results rose only 8.3% in H1 against the 18.7% sales jump, pointing to margin pressure. The standalone (India) entity — the one that actually pays the dividend — earned FY26 PAT of ₹1,515.61 Cr (EPS ₹14.81). Return ratios are solid, with ROCE around 18.8% and ROE near 16% (Screener). These figures frame whether the ₹5 interim dividend is comfortably earned.

Godrej Consumer Products Dividend Per Share by Financial Year

*First interim for FY27. Payout % computed on consolidated EPS. FY24 payout not meaningful because the group reported a consolidated net loss that year. Source: company Dividend History, Screener.in, Trendlyne; figures grouped by financial year of ex-date.

The most important fact standard coverage tends to skip: Godrej Consumer Products paid no dividend for three straight years (FY21, FY22, FY23) before resuming in November 2023. So while the stock now looks like a dependable quarterly payer, that record is barely two years old. A second nuance is coverage: the trailing ₹20 annual payout was 110% of consolidated EPS and 135% of standalone EPS in FY26, meaning recent dividends have slightly exceeded reported earnings and have leaned on healthy cash reserves. This is not alarming for a cash-generative FMCG business, but it does mean the payout is being funded by the balance sheet as much as by the current year's profit. Investors tracking Godrej Consumer Products dividend income should weigh consistency-rebuilt-recently against a payout ratio running above 100%.

If Godrej Consumer Products maintains its recent cadence of quarterly interim dividends, this ₹5 payout is likely the first of several across FY27, mirroring the ₹20–₹25 annual rhythm of the last two years. The company has not disclosed any forward dividend guidance, so no specific future amount should be assumed. The outlook hinges on two things the company itself controls: whether India demand and margins recover from the current input-cost and competitive pressure, and whether management continues prioritising shareholder payouts over debt reduction (consolidated debt-to-equity is a modest 0.37) or acquisitions. A sustained earnings recovery would make the above-100% payout ratio self-correcting; continued margin compression would make it increasingly reserve-funded. This Godrej Consumer Products dividend outlook is descriptive only and is not a forecast of board action.

At its Board meeting on 29 October 2026, the Board of Directors of Godrej Consumer Products Limited declared an interim dividend of ₹5 per equity share (500% on face value of ₹1 each) for FY 2026-27, alongside the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026. As disclosed in the exchange filing (Regulations 30, 42, 43 and 52 of SEBI LODR), the record date for determining eligible shareholders is Wednesday, 4 November 2026, and the dividend will be paid on or before Friday, 27 November 2026. Being an interim dividend declared by the Board, it does not require separate shareholder approval at an AGM. The meeting commenced at 2:00 p.m. and the above matters were approved by 3:35 p.m. (IST).

Under India's current T+1 settlement cycle, the ex-date and record date typically fall on the same trading day, so the ex-date is inferred as 4 November 2026. This should be confirmed against the official NSE/BSE corporate-action circular. To be eligible for the Godrej Consumer Products dividend, shares must be held in the demat account as of the record date.

Here is the face-value illusion made plain. The "500%" dividend is 500% of the ₹1 face value — not of your investment. At the current market price of about ₹814, the ₹5 interim is a real yield of only 0.61%. Counting the full trailing-twelve-month payout of ₹20, the Godrej Consumer Products dividend yield is about 2.46% — broadly in line with Screener's quoted 2.47%. One honest caveat: that trailing yield looks a little healthier partly because the share has fallen from a 52-week high of ₹1,275 to near its 52-week low of ₹777. A lower price mechanically lifts yield even if the rupee dividend is unchanged, so a "higher yield" here reflects price weakness as much as dividend generosity.

Classifying the record: Godrej Consumer Products is best described as a "recently re-established consistent payer" rather than an unbroken dividend aristocrat. The company paid dependable dividends through FY20, then suspended payouts entirely for FY21–FY23 during a period of reinvestment and a loss-making FY24 at the consolidated level. Since resuming in November 2023, it has shifted to a regular quarterly interim rhythm — four interims of ₹5 totalling ₹20 in FY26, and ₹25 in FY25. There have been no special dividends in the recent window. The pattern tells investors the payout is a deliberate, rebuilt policy of the current management, but one with a short modern track record. Anyone relying on Godrej Consumer Products dividend history for income should note the three-year gap is well within recent memory.

Revenue momentum is strong but profit conversion is softening. In H1 FY27 consolidated revenue grew 18.7% to ₹8,638.56 Cr, yet segment operating profit rose only 8.3% and net profit 12.7%. The operating margin eased to about 18.8% from 19.8% a year earlier. The gap reflects higher raw-material and packing costs (₹3,381.62 Cr in H1, up sharply) and sustained advertising and promotion spend. Growth is broad-based across India, Indonesia and Africa, but the India segment — the dividend engine — carries the profit weight. FY26 full-year PAT of ₹1,861.47 Cr already recovered strongly from the one-off loss in FY24. For the Godrej Consumer Products dividend, the key read is that earnings comfortably exist to support payouts, but margin compression is the variable to watch for payout headroom.

Reported profit is an opinion; cash is a fact — and here the facts are nuanced. Consolidated operating cash flow in H1 FY27 was ₹647.04 Cr, below the ₹1,027 Cr net profit, because working capital absorbed cash (inventories up ₹582.69 Cr, receivables up ₹240.08 Cr). After ₹356.33 Cr of capex, consolidated free cash flow was only ₹290.71 Cr — which does not fully cover the ₹511.65 Cr this single interim will cost (0.57x). Standalone FCF was a healthier ₹399.05 Cr. Importantly, the group actually paid out ₹1,023.27 Cr in dividends during H1 (the earlier ₹10/share), confirming that payouts are currently drawing on cash reserves, not just in-period free cash flow. This is sustainable given the strong balance sheet, but it is a genuine funding fact standard coverage omits.

The balance sheet is what makes the above-100% payout ratio comfortable. As at 30 September 2026, Godrej Consumer Products held consolidated cash and liquid investments of roughly ₹2,987 Cr (cash ₹574.62 Cr, bank balances ₹29.80 Cr, current investments ₹2,382.76 Cr), which covers this ₹511.65 Cr interim 5.8 times over. Consolidated net worth stands at ₹12,618.15 Cr and debt-to-equity is a conservative 0.37, with borrowings largely short-term. One structural caveat: a large part of the asset base is goodwill (₹5,773.25 Cr) and intangibles (₹4,496.09 Cr) from past overseas acquisitions — the same assets behind the FY24 impairment-led loss. Tangible book is therefore thinner than headline net worth suggests, but near-term dividend capacity is unquestionably backed by real liquidity.

Four-Test Sustainability Scorecard

Verdict: Moderately Sustainable. The Godrej Consumer Products dividend is firmly backed by a strong, low-debt balance sheet and ample cash, but it currently runs ahead of both reported earnings (110%+ payout) and in-period free cash flow. Sustainability therefore depends on an earnings and margin recovery rather than on liquidity, which is not in doubt near term.

At about 2.4%, the Godrej Consumer Products dividend yield sits in the middle of the large-cap FMCG pack — above Marico, Britannia and HUL, but below Colgate-Palmolive and Emami, which run higher-payout models. The cluster confirms that Indian FMCG is a low-yield, growth-and-brand sector; none of these names is a high-yield income play. Source: Trendlyne FMCG dividend screener, 02-Nov-2026.

With promoters holding 53.05% of Godrej Consumer Products (Sep 2026 shareholding), the promoter group will receive an estimated ₹271.43 Cr of this ₹511.65 Cr interim, and roughly ₹1,086 Cr across the trailing ₹20 annual payout. Public and non-institutional shareholders collectively receive about ₹77.87 Cr from this interim. A relevant governance note: promoter holding has fallen from roughly 63% to 53% over three years, while DIIs have risen to 20.70% and FIIs eased to 10.99%. The dividend is distributed pro-rata, so every shareholder benefits equally per share — but because the promoter stake is dominant, the majority of the cash outflow flows to the promoter group. This is normal for a founder-led FMCG company and is disclosed in the public shareholding pattern.

Since April 2020, dividends are taxable in the hands of the shareholder at their applicable income-tax slab rate; the company deducts TDS at 10% under Section 194 if total dividend paid to a resident shareholder in a financial year exceeds ₹5,000 (TDS at 20% without PAN; different rules apply for non-residents under Section 195).

Worked Example — 1,000 Shares

Illustrative only; not tax advice. A shareholder at exactly ₹5,000 total is at the TDS threshold — crossing it triggers 10% TDS on the full amount. Consult a qualified tax adviser.

• 1. Payout above earnings: Trailing ₹20 dividend is 110% of consolidated and 135% of standalone FY26 EPS — reliant on reserves if profit growth stalls.
• 2. Margin compression: H1 revenue grew 18.7% but operating profit only 8.3%, as input (incl. palm-derivative) costs and A&P spend squeeze margins.
• 3. Short dividend track record: Payouts were suspended FY21–FY23; the current consistent policy is only about two years old.
• 4. Goodwill-heavy balance sheet: ₹5,773 Cr goodwill + ₹4,496 Cr intangibles from overseas deals; FY24 already saw an impairment-led loss.
• 5. Overseas & FX exposure: Indonesia and Africa operations add currency and hyperinflation-accounting volatility to consolidated earnings.
• 6. Price weakness: Stock near its 52-week low (₹777) versus a ₹1,275 high — yield is elevated partly by the fall, not dividend growth.

• 1. India operating margin trend: Whether the 18.8% operating margin stabilises or slips further in H2 FY27.
• 2. Free cash flow conversion: Whether H2 working capital unwinds and FCF catches up to the dividend run-rate.
• 3. Dividend cadence: Whether the board sustains the quarterly interim rhythm and the full-year total versus FY26's ₹20.
• 4. Payout ratio: Whether earnings recover enough to bring the ratio back below 100% of EPS.
• 5. Volume growth: Underlying volume (not just value) growth across India home-care and personal-care categories.
• 6. Promoter & institutional holding: Any further change in the promoter stake or DII/FII flows in upcoming shareholding patterns.

Godrej Consumer Products' ₹5 interim dividend is a clean, well-disclosed payout from a financially strong, low-debt FMCG leader — but the "500%" headline is purely a face-value artefact; the real single-interim yield is 0.61% and the trailing yield about 2.46%, middling for the sector. The genuinely useful findings are that payouts were suspended for three years through FY23, that the trailing payout now runs above 100% of earnings, and that it is currently funded from cash reserves rather than in-period free cash flow — all comfortably supported by ₹2,987 Cr of liquidity, but dependent on an earnings recovery to normalise. We classify the dividend Moderately Sustainable. This is analysis, not advice: positives, negatives, risks and monitoring points are laid out so you can decide for yourself.