Godrej Consumer Products expects mid-single digit INR revenue growth for Q2 FY26. The update notes a short-term impact on profitability due to GST rate reductions, with EBITDA likely to decline. The company anticipates a return to stronger performance in the second half of the financial year. Home Care continues to show strong momentum, while Personal Care is expected to decline slightly.
Q2 FY26 Performance Overview
Godrej Consumer Products anticipates mid-single digit INR revenue growth for Q2 FY26. This reflects the operating performance and demand trends during the quarter ending September 30, 2025. This is based on internal unaudited management reports.
Impact of GST Reforms
Recent GST reforms are expected to strengthen consumer demand, benefiting nearly one-third of GCPL’s portfolio with a reduced GST of 5%. The company passed on these benefits effective September 22, 2025. The GST rate reductions resulted in some short-term adjustments across trade channels, impacting growth and profitability.
Segment Performance
The Standalone business is expected to deliver mid-single digit value growth, supported by low-single digit UVG. Home Care continues to demonstrate strong momentum, likely resulting in high-single digit value growth. Personal Care is likely to decline low-single digit, influenced by the soaps category.
International Performance
Indonesia continues to witness heightened competitive pricing activity, likely resulting 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.
Profitability Outlook
The GST transition in India is expected to have a short-term impact on profitability, with EBITDA likely to decline for the quarter. The company remains confident in its plans and is positive about the likely performance in the second half of the financial year.
Source: BSE
