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Godrej Consumer Products (GCPL) reported a low single digit revenue rise on an underlying volume growth of 3 per cent in Q2 of FY26, the company saying demand was affected by short-term disruptions by the transition to the new GST regime. The company said it expected demand to normalise in the coming months “as trade channels return to normal.” Consolidated revenue in the September quarter rose 4 per cent on year to ₹3825 crore. However net profit dipped 6.5 per cent to ₹459 crore due to fall in other income, rise in expenses and one-off litigation-related costs. The company also announced the GPCL announced the acquisition of men’s grooming brand ‘Muuchstac’ via slump sale from Trilogy Solutions Private for ₹449 crore. The company’s EBITDA margin stood at 19.3 per cent. Despite the headwinds from the GST transition and continued macroeconomic challenges in Indonesia the quarter was resilient, said Sudhir Sitapati, Managing Director and CEO. “Despite these headwinds, our India business, excluding soaps, has delivered double-digit underlying volume growth, reflecting the strength of our core portfolio and execution. The recent GST rate reduction is a welcome structural reform that will strengthen long-term consumer demand. However, this transition led to short-term trade disruptions as the channel adjusted to new pricing and cleared old inventory, particularly impacting Soaps and Hair colour. Despite this, we continue to gain market share in Soaps and other key categories,” he said. In the home care segment, the company delivered 6 per cent growth, led by strong performance in Air Fresheners and Fabric Care. The company’s international portfolio faced macro and competitive pressure in Indonesia, which was offset by performance in Africa. In the near term, the company is expecting to strengthen its performance sequentially through FY26, with the second half delivering a stronger trajectory than the first. “Given the temporary pressures in these international markets, consolidated EBITDA growth may be marginally lower. Nevertheless, we remain firmly confident in our strategy, the resilience of our portfolio, and the strength of our brands. With disciplined execution and continued focus on innovation and operational excellence, we are well-positioned to deliver sustainable and profitable growth in the periods ahead,” added Sudhir Sitapati. Published on October 31, 2025
