Godrej Consumer Products Ltd - Quarterly Update: Q2FY26

This update provides an overall summary of the operating performance and demand trends during the quarter ended Sep 30, 2025. This is based on internal unaudited management reports. This will be followed by a detailed performance update, post the approval of the Q2FY26 financial results by the Board of Directors. Please note: The update below excludes pet care business.

The Government's recent GST reforms represent an encouraging step towards strengthening consumer demand. With the revised rates, nearly one-third of GCPL's portfolio-primarily toilet soaps as well as smaller categories like talcum powders, shampoos, and shaving creams-now benefits from a reduced GST of 5%, down from the earlier ~18%. In line with our commitment to consumers, we have already passed on these benefits of GST effective September 22, 2025. We are confident that these reforms will serve as a structural growth driver, enabling volume-led expansion and reinforcing our long-term value creation agenda for all stakeholders.

The GST rate reductions have resulted in some short-term adjustments across trade channels, as distributors and retailers focused on liquidating existing inventories. This has delayed the flow of new orders and temporarily deferred consumer purchases, impacting both growth and profitability. Consequently, our Standalone business is expected to deliver mid-single digit value growth, supported by low-single digit UVG. Within our categories, Home Care portfolio continues to demonstrate strong momentum, likely to result in high-single digit value growth, while Personal care is likely to decline low-single digit, largely influenced by the soaps category. We believe this is a transitory adjustment and remain confident in the long-term benefits of the reforms.

In our international portfolio, Indonesia continued to witness heightened competitive pricing activity across key categories, which is likely to result in a low-single digit decline in value growth, albeit with slightly positive UVG. GAUM (Godrej Africa, USA, and Middle East) is likely to deliver its consecutive third quarter of strong topline performance. It is expected to deliver double-digit value and volume growth.

At a consolidated level, we anticipate mid-single digit INR revenue growth. However, the GST transition in India is expected to have a short-term impact on profitability, with EBITDA likely to decline for the quarter. Despite this temporary adjustment, we remain confident of our plans and are positive of the likely performance in the second half of the financial year.

Shares of Godrej Consumer Products Limited was last trading in BSE at Rs. 1129.85 as compared to the previous close of Rs. 1152.45. The total number of shares traded during the day was 42686 in over 2929 trades.

The stock hit an intraday high of Rs. 1145.45 and intraday low of 1121.45. The net turnover during the day was Rs. 48421466.00.

Source : Equity Bulls

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GodrejConsumerProducts INE102D01028 QuarterlyUpdate Q2FY26 Q2FY2026