Godrej Consumer Projects Mid-Single-Digit Revenue Growth in Q2

Godrej Consumer Products Ltd (GCPL), a prominent player in the consumer goods sector and part of the diversified Godrej Group, announced on Tuesday its expectations for consolidated revenue growth in the mid-single digits for the second quarter of fiscal year 2026 (FY26). This projection comes amid the ongoing transition to the new Goods and Services Tax (GST) framework, which has significantly altered tax rates on a portion of its product portfolio.

As per the latest GST reforms, approximately one-third of GCPL’s products, including well-known brands such as Godrej No.1, Cinthol, Godrej Expert, and Ezee, are now taxed at just 5%, a reduction from the previous rate of 18%. The company began passing these tax benefits on to consumers starting September 22, 2025. This strategic move is expected to foster volume-led growth and contribute to long-term value creation for the company.

Market Performance Insights

On the domestic front, GCPL’s standalone business is anticipated to achieve mid-single-digit value growth, with underlying volume growth (UVG) projected in the low-single digits. The company’s home care segment is displaying robust momentum, reporting high-single-digit value growth. In contrast, the personal care segment is expected to see a decline in the low-single digits, primarily attributed to a downturn in soap sales.

Internationally, GCPL’s performance varies by region. In Indonesia, the company is experiencing intense pricing pressure, resulting in a low-single-digit value decline despite a slightly positive underlying volume growth. Conversely, the GAUM markets—which encompass regions in Africa, the USA, and the Middle East—are anticipated to deliver double-digit value and volume growth for the third consecutive quarter.

Despite the challenges posed by the GST transition, including potential short-term disruptions that may temporarily impact EBITDA, GCPL maintains an optimistic outlook for the second half of the financial year. The company recognizes that the current adjustments in trade channels, as they clear out old inventory with pre-GST labels, may create some turbulence in the interim.

GCPL boasts a diverse range of operations across India, Africa, Southeast Asia, and the Middle East. Its extensive portfolio includes toiletries, hair care products, household insecticides, and home cleaning solutions, targeting both premium and mass-market segments.

As of the close of trading, shares of Godrej Consumer Products Ltd finished marginally higher at ₹ 1,152.45 on the Bombay Stock Exchange (BSE). The company’s proactive approach during this transition period signals a commitment to maintaining its competitive edge and enhancing consumer value in the evolving market landscape.