GCPL expects mid-single-digit Q2 growth as GST rejig delays new orders

Godrej Consumer Products Limited (GCPL) expects mid-single-digit value growth in the second quarter of fiscal year 2026, citing delays in new orders and deferred consumer purchases following the recent Goods and Services Tax (GST) revisions effective from September 22.

In a stock exchange filing, the maker of Good Knight and HIT said, “GST rate reductions have resulted in some short-term adjustments across trade channels, as distributors and retailers focused on liquidating existing inventories. This has delayed the flow of new orders and temporarily deferred consumer purchases, impacting both growth and profitability.”

The company noted that nearly one-third of its portfolio — including toilet soaps, talcum powders, shampoos, and shaving creams — now falls under the 5% GST slab, down from the earlier 18%.

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GCPL expects high-single-digit value growth in its home care portfolio, while personal care is likely to record a low-single-digit decline, largely due to softness in the soap category.

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In its international business, GCPL said its Indonesia unit continues to face intense pricing competition across key categories, likely leading to a low-single-digit decline in value growth. However, its Africa, USA, and Middle East (GAUM) business is projected to deliver its third consecutive quarter of strong performance, with double-digit value and volume growth.

At a consolidated level, GCPL anticipates mid-single-digit revenue growth for the quarter.