Godrej Consumer Q2 FY26 Revenue Grows 4%, EBITDA at 19.3%

Godrej Consumer Products Limited (GCPL), a leading  emerging markets FMCG company, today announced its financial results for the quarter  ended September 30, 2025. 

FINANCIAL OVERVIEW 

Q2 FY 2026 FINANCIAL PERFORMANCE SUMMARY: 

• Q2 FY 2026 consolidated sales grew by 4% in INR and 4% in constant currency terms year on-year on the back of underlying volume growth of 3%, 

- Standalone business underlying volume grew by 3%, sales grew by 4% year-on-year - Indonesia underlying volume growth grew by low mid-single-digit, sales de-grew by  7% in constant currency and INR terms, year-on-year 

- Africa, USA, and Middle East organic sales grew 25% in INR and 15% in constant  currency terms, year-on-year 

- Latin America and Others de-grew sales by 9% in INR and grew by 5% in constant  currency terms, year-on-year 

• Q2 FY 2026 consolidated EBITDA* margins stood at 19.3% 

• Q2 FY 2026 consolidated net profit de-grew by 2% year-on-year (without exceptional  items and one-offs) due to temporary headwinds 

*EBITDA incl. forex

MANAGING DIRECTOR AND CEO’S COMMENTS 

Commenting on the business performance, Sudhir Sitapati, Managing Director, and  CEO, GCPL, said: 

Q2 FY26 has been a resilient quarter for Godrej Consumer Products Limited (GCPL), especially given the  backdrop of the GST transition in India and continued macroeconomic challenges in Indonesia. Despite these  headwinds, our India business, excluding soaps, has delivered double-digit underlying volume growth,  reflecting the strength of our core portfolio and execution. 

Our international portfolio faced macro and competitive pressures in Indonesia, which were offset by robust  performance in Africa. On a consolidated basis, our revenues grew 4% in INR terms, supported by 3%  underlying volume growth. Our EBITDA margin stood at 19.3%, and net profit before exception declined by  2% 

In India, sales grew by 4% and volumes by 3%. 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. 

In Home Care, we delivered 6% growth, led by strong performance in Air Fresheners and Fabric Care. Personal  Care declined by 2%, largely reflecting the GST-related impact on soaps. As guided earlier, this was the last  weak quarter for margins, and we expect a return to normative levels in the second half of FY26 for India. 

Across our portfolio, our new launches are performing well and gaining traction. Godrej Fab and Goodknight  Agarbatti are now among the leading players in their categories and continue to strengthen their market  positions. Aer Plug, Amazon Woods 4X, and KS 99 have all met or exceeded launch expectations and are now  being scaled up. 

In October, we also entered the Toilet Cleaner category — a close to ₹3,000 crore segment growing at strong  double digits. Our new brand, Godrej Spic, has been launched in select South Indian states, priced  competitively at ₹79 for 500 ml, marking an important step in expanding our Home Care portfolio. 

Our Indonesia business continues to face macro and pricing pressures, but delivered a stable UVG of 2%, with  market share gains across all key categories. Revenue growth remained negative due to ongoing pricing  challenges at -7%. In contrast, Africa, USA, and Middle East (GAUM) delivered 25% sales growth in INR terms and 15% in constant currency and EBITDA growth of 20%, led by Hair Fashion and Air Fresheners. The launch  of Aer Pocket has seen strong consumer response across these markets. 

As shared during our Investor Meet, we expect our performance to strengthen sequentially through FY26, with  the second half delivering a stronger trajectory than the first. Demand trends are improving, and we remain  confident of achieving high single-digit underlying volume growth (UVG) in our Standalone business and high  single-digit revenue growth at a consolidated level. On profitability, our India (Standalone) and GAUM  businesses are expected to deliver double-digit EBITDA growth. We faced unanticipated macroeconomic  headwinds in both Indonesia and Latin America. 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.

Godrej Consumer Products Limited to acquire men’s grooming brand  “Muuchstac” 

Godrej Consumer Products Limited (GCPL) today announced that it has signed definitive agreement to acquire the FMCG business under the ‘Muuchstac’ brand via slump sale from Trilogy Solutions Private Limited. This  brand is one of the India’s fastest-growing men’s grooming brands with a strong leadership position in the  men’s facewash segment. This acquisition marks a strategic step in GCPL’s journey to strengthen its Personal  Care portfolio and expand its footprint in high-growth, high-margin categories. 

The Muuchstac business has a distinctive position in the men’s skincare space through its digital-first approach  and, unique influencer-led marketing model. The Muuchstac brand is currently among the top two players in  online men’s facewash and top three overall, supported by a sharp value proposition and an online go-to market strategy. Over the twelve months ending September 2025, Muuchstac business recorded revenues (Ind  AS) of approximately ₹80 crore and EBITDA (adjusted for one-offs) of around ₹30 crore, reflecting its strong  operating discipline and profitability. 

The Indian facewash market, estimated at ₹6,000–7,000 crore, is growing at 15–20% per annum, driven by rising  awareness of skincare and an ongoing shift from soaps to more specialized cleansing formats. Within this, the  men’s facewash category, valued at about ₹1,000 crore, is growing at over 25% annually, making it one of the  fastest-growing segments in personal care. The upgradation trend from soaps to facewash, supported by  higher disposable incomes, and changing grooming preferences, is expected to sustain strong momentum in  the coming years. 

Muuchstac has demonstrated scalability in digital channels and holds significant potential for offline expansion,  where penetration remains low, but opportunities are large. GCPL intends to leverage its pan-India distribution  network, category expertise, and innovation capabilities to accelerate Muuchstac’s next phase of growth. 

The acquisition is expected to deliver strategic and financial benefits, including: 

• Strengthening GCPL’s presence in the fast-growing men’s grooming segment. 

• Expanding participation in the premium skincare market with a profitable, digitally native brand. • Leveraging GCPL’s distribution, supply chain, and innovation strengths to scale Muuchstac across  offline channels. 

• Enhancing portfolio profitability with a high-margin business that aligns with GCPL’s long-term value  creation framework. 

Speaking on the announcement, Sudhir Sitapati, Managing Director & CEO, said: 

“We are delighted to welcome Muuchstac brand to Godrej Consumer Products. The brand’s strong resonance  among younger consumers, high profitability, and proven digital execution model make it a powerful addition  to our Personal Care portfolio. This acquisition enhances our participation in the fast-growing men’s grooming  segment and supports our vision of building a future-ready, innovation-led GCPL.” 

Ronak Bagadia and Vishal Lohia, founders of Muuchstac, said: 

“It’s a proud moment for us and our teams to see Muuchstac become part of the Godrej family. We look forward  to the business scaling ahead, on our vision of redefining men’s skincare in India and we will work closely with  the team at Godrej towards this.” 

*As per internal estimates

BUSINESS UPDATE – INDIA 

Performance Highlights 

• Q2 FY 2026 sales grew by 4% to ₹2,362 crore; UVG grew by 3% 

• Q2 FY 2026 EBITDA declined by 8% to ₹512 crore 

Category Review 

GST Changes strengthening long term demand, though with near term impact 

• The GST reforms represent an encouraging step towards strengthening consumer  demand, as 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%. In line with the operating philosophy of  “Consumer first, Business second”, have already passed on these benefits of GST  effective September 22, 2025.  

• GST rate reductions impacted trade beyond directly affected categories. For Soaps,  significant short-term adjustments across trade channels, as distributors and  retailers focused on liquidating existing inventories. Household Insecticides and  Hair Colour were impacted significantly by confusion in trade around similar HSN  categories getting rate reduction. Other categories saw moderate impact driven by  trade adjustments & reallocation of funds. 

• Demand to normalise in the coming months as trade channels return to normal.  Reforms will serve as a structural growth driver, enabling volume-led expansion and  reinforcing long-term value creation for all stakeholders. 

Home Care 

Home Care grew by 6% 

• For Household Insecticides, all actions in line with the plan. Electrics gaining market  share and Incense Sticks continue to scale up and are the largest branded stick in  the category. Non-mosquito portfolio delivers solid growth. 

• Air Fresheners continues strong growth trajectory. Continue to gain market share  and enjoy market leadership. New launch of Aer Plug has scaled very well and  gained significant consumer traction and repeat sales. 

• Fabric Care continued to deliver strong growth momentum like previous quarters.  Continue to gain market share on the back of strong performance in Godrej Fab. • Launched Godrej Spic, entry into Toilet Cleaners. Toilet Cleaners is a ~3K Cr  

category in India, growing in strong double digits. Launched in select states of South  India; priced at INR 79 for 500 ml.

Personal Care  

Personal Care de-grew by 2% 

• Personal Wash was most impacted by GST transition and continued to gain market  share. GST rate reduction from 18% to 5%; new pricing implemented from September 22 , 2025. This resulted in some short-term adjustments across trade  channels, as distributors and retailers focused on liquidating existing inventories.  

• Hair Colour continues to gain market share across our key bets on both Crème and  Shampoo Hair Colour. Shampoo Hair Colour continues strong growth performance. • Perfumes & Deodorants delivers strong performance. New launch of Amazon  Woods 4X has witnessed good repeat rates. KS99 continues to perform well and  scaled up to other states of Southern India. 

• Deo lotion launched in select markets of South India, priced at an attractive INR 20; aimed at driving penetration of fragrances & deodorants. 

BUSINESS UPDATE - INDONESIA 

• Market share gains backed by volume growth. Indonesia delivered 2% UVG and  sales declined by 7% in constant currency and INR terms and EBITDA declined by  6%. Expect pricing pressure to ease in a few months. 
• Hair Colours continued its strong run of performance and delivered double-digit  growth led by Shampoo Hair Colour. Baby Care continued to grow and gain market  share. 

BUSINESS UPDATE - AFRICA, USA AND MIDDLE EAST 

• Strong growth led by Hair Fashion and scale up of Air Fresheners. • Strong topline growth at 25%; EBITDA growth at 20%. Continuing strong  performance in Hair Fashion across key markets
• Aer Pocket continues strong traction for the second quarter across markets. Hair  Care range continued to deliver strong double-digit growth across Africa.