Godrej Consumer cuts ad spend 6% to Rs 341 crore in Q3 as profit rises to Rs 700 crore

Godrej Consumer Products, a leading maker of household and personal care brands, posted a modest profit increase in the December quarter, supported by steady demand and careful cost control amid international pricing challenges.

In a stock exchange filing, the company stated that its consolidated profit increased 2.6% to Rs 700 crore in the third quarter of fiscal 2026, up from Rs 681.7 crore in the same quarter a year earlier. Profit was 12% higher than the previous quarter, reflecting an improvement in operating efficiency.

Revenue grew at a faster pace during Q3, with sales rising nearly 9% to Rs 4,079 crore, supported by higher volumes across key categories, including insecticides, hair care, and household products. Total expenses increased more slowly, by 6.3%. The FMCG giant also spent less on advertising during the quarter, trimming promotional costs to Rs 341 crore, down about 6% from a year earlier. Raw material costs remained the largest expense, accounting for nearly 40% of the total spending.

In a statement, the company said it delivered "robust growth" across key metrics, with underlying volume growth of 7% and EBITDA margins expanding to 21.6%. Profit before one-off items rose 14%, signalling what the company described as durable earnings momentum.

Overseas performance of GCPL in Q3 FY26 was mixed. In Indonesia, one of its largest international markets, pricing pressures persisted, but it still recorded 5% volume growth, driven by shampoo, hair colour, and baby care products. In contrast, businesses in Africa, the US, and the Middle East posted stronger results, with sale rising 19%, driven by demand for hair fashion and air freshener products.

During the quarter, Godrej Consumer completed the acquisition of Muuchstac, a men's grooming brand, marking a push into the fast-growing male personal care segment.

On the outlook of the FMCG market, Godrej Consumer said it expects high single-digit revenue growth for the full year, even as inflation, currency movements, and pricing challenges in markets such as Indonesia and Latin America could temper earnings growth. Still, the company said it remains confident of entering the next fiscal year with strong momentum, particularly in its India business.