GCPL trims consolidated ad spends by 5.15% to Rs 313 crore in Q1 FY26
GCPL clocked a profit of Rs 452.45 crore in Q1 FY26 compared to Rs 450.69 crore in the same period year ago period.
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FMCG company Godrej Consumer Products has announced its first-quarter earnings for the fiscal year 2026. The Good Knight and HIT brand maker posted a marginal rise in consolidated profit at 0.4%, but total income surged 9.9% during the June quarter in FY2026.
GCPL clocked a profit of Rs 452.45 crore in Q1 FY26 compared to Rs 450.69 crore in the same period year ago period. The company's total income increased from Rs 3,408.69 crore in Q1 FY25 to Rs 3,746.38 crore in Q1 FY26.
During the June quarter, Godrej Consumer scaled up its expenses by 13.4%. However, it reduced its advertisement and promotional expenses significantly.
On consolidated basis, Godrej Consumer's ad expenditure declined by 5.15% to Rs 313.83 crore while on standalone basis, the company reduced adex by 10.11% to Rs 231.62 crore in Q1 FY26.
In a statement, Sudhir Sitapati, Managing Director and CEO of GCPL, said, “Q1FY26 has been a good quarter for us, particularly for our standalone business excluding soaps, which recorded volume growth in the high teens. This was led by robust, broad-based demand.”
The India business grew 8% in revenue with a 5% volume increase, despite a 6% decline in EBITDA. Sitapati noted that excluding soaps, which were impacted by volume-price rebalancing, volume growth was in the high teens. Household Insecticides delivered high single-digit volume growth, with electric formats seeing double-digit gains following a successful product relaunch. GCPL also gained market share in this segment.
“Air fresheners, laundry liquids, and other segments continued to perform well,” Sitapati said. The company also affirmed that it is on track to deliver ~200 bps in media investment savings this year, without sacrificing reach, aided by better planning, automation, and new agency partnerships.
However, GCPL’s international portfolio remained a mixed bag. The Indonesia business faced macroeconomic headwinds and competitive pricing, but the company expects these challenges to be short-term. Meanwhile, Africa posted a 30% sales increase and 15% EBITDA growth, buoyed by the successful launch of Aer Pocket across markets. Latin America also reported high single-digit volume growth, with EBITDA margins entering double-digit territory.
Looking ahead, GCPL reiterated guidance shared during its 2025 Investor Meet. The company expects performance to improve sequentially in FY26, with stronger results anticipated in the second half. While standalone EBITDA margins in the first half are expected to remain below the normative range, moderation in palm oil prices is expected to benefit margins from H2FY26 onwards.
Sitapati added, “We remain on track to deliver mid-to-high single-digit volume growth in our standalone business, high single-digit consolidated revenue growth, and double-digit consolidated EBITDA growth for the full year.”
He reaffirmed that GCPL will continue to focus on reducing inefficiencies and reinvesting those savings into driving sustainable and profitable volume growth, aligned with the company's purpose of delivering health and beauty to consumers across emerging markets.
