Godrej Consumer Products Ltd. (GCPL) reported strong Q3 FY26 results with a 9% revenue increase and 7% underlying volume growth. EBITDA expanded by 16%, reaching a margin of 21.6%. The India business delivered excellent performance, driven by high single-digit underlying volume growth of 9%. GCPL completed the acquisition of Muuchstac and expects continued growth and profitability momentum into FY27, driven by category development and cost management.
Financial Performance Highlights
Godrej Consumer Products Limited (GCPL) reported a strong broad-based performance in Q3 FY26:
- Revenues grew by 9% in INR terms.
- Underlying volume growth reached 7%.
- EBITDA expanded by 16%, with margins at 21.6%.
- Net profit before exceptionals grew by 14%.
India Business Performance
The standalone India business delivered excellent results:
- Underlying volume growth of 9%.
- EBITDA margins stood at 24.8%, supported by favorable input costs and cost management.
- Sales grew 11%.
Segment Performance
Home Care
- Delivered 12% value growth, driven by air fresheners and fabric care.
- Continued market share gains in household insecticides.
Personal Care
- Witnessed a recovery, growing 7%.
- Soaps demonstrated a positive trajectory due to improved affordability.
- Margins returned to normative levels.
Strategic Developments
- Acquisition of Muuchstac successfully completed on November 10th.
International Portfolio
The international portfolio demonstrated resilience amidst a mixed operating environment.
Indonesia
- Stable underlying volume growth of 5%.
- Profitability improved by close to 100 bps.
Africa, USA, and Middle East (GAUM)
- Sales growth of 19% in INR terms.
- EBITDA grew 18%.
Outlook
- Confident of achieving high single-digit revenue growth at a consolidated level for the year.
- India business expected to deliver continued growth and hold normative EBITDA margins.
- GAUM continues to perform well and deliver double-digit revenue and profit growth.
- Confident of a robust exit trajectory at a consolidated level and sustained profitability into FY’27.
Q&A Highlights
Key discussion points from the question and answer session with analysts:
- Pet Food: Test market in Tamil Nadu, new plant ready in Nashik. Results have been mixed.
- Muuchstac: Focus on single SKU in face wash with rapid growth. Goal to become number two player.
- Home Insecticides: Expect mid to high single digit growth.
- Indonesia: Expect 4-5% volume growth.
Source: BSE
