Godrej Industries Limited (GODREJIND) AI Stock Analysis

• Market Cap: ₹279.77B
• Dividend Yield: N/A
• Average Volume (3M): 5.54K
• Price to Earnings (P/E): 41.3
• Beta (1Y): 1.07
• Revenue Growth: 16.77%
• EPS Growth: 137.93%
• Country: IN
• Employees: 1,050
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Conglomerates
• EPS (TTM): 6.07
• Shares Outstanding: 336,804,840
• 10 Day Avg. Volume: 6,762
• 30 Day Avg. Volume: 5,536
• PEG Ratio: 0.02
• Price to Book (P/B): 3.62
• Price to Sales (P/S): 1.75
• P/FCF Ratio: -6.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹847.00 ▼(-16.98% Downside)
• Action: Reiterated Date: 11/25/25
• Date: Action: Reiterated 11/25/25

Godrej Industries faces significant financial and technical challenges. High leverage and negative cash flows are major concerns, while technical indicators suggest bearish momentum. The stock's high P/E ratio indicates potential overvaluation. Improvement in cash flow management and operational efficiency is crucial for enhancing financial stability.

Positive Factors

Diversified business mix

Godrej Industries' exposure across branded FMCG, property development, agrochemicals and standalone oleochemicals provides durable revenue diversification. Multiple business lines reduce single-cycle sensitivity, enabling more stable consolidated cash flows and strategic reallocation of capital across cycles.

Sustained revenue growth and margins

The company has shown a clear revenue growth trajectory with healthy gross and decent net profit margins. Sustained top-line expansion and maintained margin structure point to product mix improvements and operational scalability that support longer-term earnings resilience and reinvestment capacity.

Holding-company optionality

As a holding and operating company with significant stakes in listed and unlisted group entities, Godrej Industries can realize value through dividends, revaluation or selective asset monetisation. This strategic optionality provides recurring income and potential one-off value uplifts over time.

Negative Factors

High leverage

Elevated and rising leverage reduces financial flexibility, raising interest burden and refinancing risk. Higher debt limits the company's ability to fund growth organically or absorb cyclical shocks, and could force prioritisation of servicing obligations over strategic investments or dividend flows.

Weak cash generation

Persistent negative free cash flow and poor conversion of reported profits into operating cash constrain internal funding for capex, working capital, or dividends. Reliance on financing activities to manage liquidity increases vulnerability to credit conditions and raises long-term funding costs.

Commodity-driven margin volatility

Standalone oleochemicals and specialty chemicals margins are materially linked to volatile vegetable oil and fatty acid prices. This structural input-price exposure can induce earnings variability, complicate margin predictability and necessitate active hedging or product mix shifts to protect margins.

Godrej Industries Limited Business Overview & Revenue Model

Company Description

Godrej Industries Limited, together with its subsidiaries, engages in the chemical, consumer goods, real estate, agriculture, and financial services businesses in India and Internationally. The company produces and sells fatty alcohols, fatty acids, esters and waxes, refined glycerine, alpha olefin sulphonates, sodium lauryl sulphate, and sodium lauryl ether sulphate. In addition, it engages in producing and selling compound feeds for cattle, poultry, shrimp, and fish; processing and trading of refined vegetable oils and vanaspati; oil palm plantation activities; and development, sale, leasing, and licensing of real estate properties. Further, the company is involved in the finance and investment activities, including housing finance; processing milk and milk products; and integrated poultry, cattle breeding, agri inputs, and seed businesses, as well as in the energy generation through windmills. In addition, it offers hair care, home care, and personal care products. The company was formerly known as Godrej Soaps Limited and changed its name to Godrej Industries Limited in April 2001. Godrej Industries Limited was founded in 1897 and is based in Mumbai, India.

How the Company Makes Money

Godrej Industries Limited makes money primarily through (1) operating income from its standalone businesses and (2) income and value capture from its investments in group companies. Standalone revenue is generated from the manufacture and sale of oleochemicals and specialty chemical products (and related industrial products), where earnings are driven by sales volumes, product mix (including higher-margin specialty offerings), and commodity input prices (such as vegetable oils/fatty acids) that influence realizations and margins. In addition, as a holding company with significant stakes in listed and unlisted group entities, it earns through dividends received from subsidiaries/associates, and may also recognize gains/losses from the sale or revaluation of investments (to the extent applicable under reporting). Consolidated performance is therefore influenced by the operating results of key group businesses—branded consumer products (FMCG/home & personal care), real estate development, and agribusiness—where the underlying revenue streams include product sales, project sales/collections, and agri-input/produce-related sales, respectively. Any significant inter-company arrangements, specific customer concentration, or material commercial partnerships affecting earnings beyond these broad group relationships are null.

Godrej Industries Limited Financial Statement Overview

Summary

Godrej Industries shows strong revenue growth and improving profitability metrics. However, high leverage and negative cash flows pose significant risks. The company needs to improve operational efficiency and cash flow management.

Income Statement

Godrej Industries has shown a solid revenue growth trajectory with a notable increase from 2024 to 2025. The company maintains a healthy gross profit margin and a decent net profit margin, although the net profit margin could be improved. EBITDA and EBIT margins indicate operational efficiency. However, the significant drop in EBIT from 2024 to 2025 suggests potential operational challenges that need addressing.

Balance Sheet

The company's debt-to-equity ratio is relatively high, indicating higher leverage and potential financial risk. However, the equity ratio suggests a decent level of equity financing. The return on equity has improved, reflecting better profitability from shareholders' investments. The balance sheet shows growth in total assets, but the increasing debt levels are a concern.

Cash Flow

Godrej Industries has struggled with negative free cash flow, which has worsened over the years. The operating cash flow to net income ratio is negative, indicating challenges in generating cash from operations. However, the significant increase in financing cash flow suggests efforts to manage liquidity through financing activities.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	213.57B	209.83B	175.89B	176.81B	150.00B	99.79B
Gross Profit	82.75B	81.65B	60.90B	54.79B	42.97B	29.93B
EBITDA	42.12B	33.71B	21.79B	24.13B	18.90B	9.62B
Net Income	9.63B	9.81B	599.70M	9.75B	6.54B	3.35B
Balance Sheet
Total Assets	1.10T	879.44B	615.48B	439.75B	340.41B	290.02B
Cash, Cash Equivalents and Short-Term Investments	138.26B	117.24B	61.55B	45.74B	59.36B	58.20B
Total Debt	465.66B	380.88B	289.96B	196.42B	145.06B	100.71B
Total Liabilities	876.94B	665.96B	464.29B	296.74B	209.60B	156.32B
Stockholders Equity	104.00B	101.52B	80.01B	79.84B	71.27B	75.53B
Cash Flow
Free Cash Flow	-45.38B	-59.32B	-54.82B	-52.37B	-22.80B	-14.09B
Operating Cash Flow	-40.72B	-51.51B	-42.84B	-44.09B	-17.56B	-6.72B
Investing Cash Flow	-25.92B	-45.97B	-27.52B	17.75B	427.60M	-51.52B
Financing Cash Flow	57.39B	106.89B	72.19B	35.35B	19.16B	57.72B

Godrej Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1020.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:GODREJIND, the sentiment is Negative. The current price of 1020.2 is above the 20-day moving average (MA) of 928.66, above the 50-day MA of 973.16, and below the 200-day MA of 1096.77, indicating a bearish trend. The MACD of -46.38 indicates Positive momentum. The RSI at 28.32 is Positive, neither overbought nor oversold. The STOCH value of 20.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:GODREJIND.

Godrej Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AWL	72 Outperform	₹249.47B	28.59	―	―	27.53%	10.43%
METROBRAND	69 Neutral	₹253.17B	64.07	―	1.48%	10.30%	-14.28%
RADICO	65 Neutral	₹355.95B	71.27	―	0.12%	24.62%	59.27%
EMAMILTD	64 Neutral	₹177.10B	18.06	―	1.91%	0.84%	-2.44%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
GODREJAGRO	58 Neutral	₹113.24B	23.92	―	1.92%	5.24%	9.79%
GODREJIND	54 Neutral	₹279.77B	41.28	―	―	16.77%	137.93%

Godrej Industries Limited Corporate Events

Exchange Seeks Clarification From Godrej Industries After Sharp Volume Surge

A sharp rise in trading volumes has been observed in the shares of Godrej Industries Limited, drawing the attention of the stock exchange. In response to this unusual market activity, the exchange has sought updated, relevant information from the company to ensure transparent disclosure and safeguard investor interests, and the market is awaiting the company’s clarification.

Godrej Industries Restructures Holdco for Financial Services Arm

Godrej Industries Limited has further invested in its wholly owned subsidiary, Godrej Investment Limited, and has completed the divestment and transfer of its entire equity stake in Godrej Capital Limited to this newly created investment arm. As a result, effective 28 January 2026, Godrej Capital Limited has been reclassified from a direct material unlisted subsidiary to a step-down subsidiary, with Godrej Investment Limited becoming its immediate holding company; this restructuring consolidates the group’s financial services investments under a dedicated subsidiary, potentially streamlining governance, capital allocation and future strategic actions within the Godrej group’s investment portfolio.

Godrej Industries Restructures Holding in Godrej Capital via Investment Subsidiary

Godrej Industries Limited has further invested in its wholly owned subsidiary, Godrej Investment Limited, and has completed the divestment and transfer of its entire equity stake in Godrej Capital Limited to this investment arm. As a result, Godrej Capital has shifted from being a direct material unlisted subsidiary of Godrej Industries to a step-down subsidiary, with Godrej Investment Limited becoming its immediate parent. The restructuring consolidates the group’s financial services interests under a dedicated investment subsidiary, potentially streamlining governance, improving capital allocation, and providing a clearer corporate structure for stakeholders while Godrej Investment Limited remains fully owned by the listed parent.

Godrej Industries Sets Up Wholly Owned Financial Services Subsidiary

Godrej Industries Limited has incorporated a new wholly owned subsidiary, Godrej Investment Limited, as part of its move into the financial services business. The new entity, established on 5 January 2026, will carry on financial services activities and is currently yet to commence operations. The company will subscribe in cash to 100% of the share capital of Godrej Investment Limited, making it a related-party subsidiary fully controlled by Godrej Industries. This step formalises a previously approved plan by the board and shareholders and signals a structured push by the conglomerate to build a dedicated financial services platform within the group’s portfolio, potentially broadening its revenue streams and strengthening its presence in India’s rapidly expanding financial sector.