Ahead of Q3 results, GCPL sees volumes, margins turning

Godrej Consumer Products Ltd (GCPL) on Wednesday said it is seeing early signs of a gradual improvement in consumption, supported by easing inflation and improving affordability following lower GST rates, ahead of the announcement of its third-quarter earnings for FY26.

The FMCG company said its standalone India business delivered double-digit revenue growth in the December quarter, driven by close to double-digit underlying volume growth. Momentum remained strong in the Home Care segment, which the company expects to post double-digit value growth, aided by sustained consumer demand and effective in-market execution.

Personal Care is expected to record mid-single-digit value growth during the quarter, led by a recovery in the soaps category, the company said.

GCPL also indicated that standalone EBITDA margins are likely to revert to the business’s normative range, supported by favourable input costs, disciplined cost management, calibrated pricing actions and improved operating leverage.

On international operations, the company said pricing pressures continued across key categories in Indonesia, weighing on performance. “We do see early signs of stabilisation and expect an improvement in both revenue and profitability from FY27 onwards,” GCPL said in its update.

In contrast, the Africa, USA and Middle East cluster continued to deliver strong and consistent performance on both revenue and profitability. The company said the cluster remains well positioned to deliver double-digit top-line and bottom-line growth in FY26, in line with its earlier guidance.

At a consolidated level, GCPL expects close to double-digit revenue growth in rupee terms and double-digit growth in EBITDA for the third quarter.

In the second quarter of FY26, GCPL reported consolidated sales of Rs 2,362 crore, up 4% year-on-year, while net profit declined 2% due to temporary disruptions following GST rate cuts. India sales grew 4% during the quarter, with volumes rising 3%. The Home Care segment, one of the company’s largest verticals, expanded 6%, led by air fresheners and fabric care.

International performance remained uneven in Q2. While Africa, USA and the Middle East recorded a 25% increase in sales in rupee terms and 15% growth in constant currency, Indonesia saw a 7% decline in revenue despite a 2% rise in volumes, as competitive pricing pressures persisted.