Godrej Consumer ad spend rises to Rs376 crore in Q2 FY26

Godrej Consumer Products Limited (GCPL) reported steady results for the September quarter, navigating a challenging goods and services tax (GST) transition at home and soft demand in Indonesia, while strengthening its portfolio through the acquisition of the men’s grooming brand Muuchstac.

The maker of Goodknight and Cinthol soaps said consolidated sales rose 4% year-on-year to ₹2,362 crore, supported by a 3% increase in underlying volumes. Net profit declined 2%, as temporary disruptions from the GST rate cuts and macroeconomic pressures weighed on margins. Consolidated EBITDA margins stood at 19.3%.

“Q2 has been a resilient quarter, especially given the GST transition in India and macro challenges in Indonesia,” said Managing Director and CEO Sudhir Sitapati. “Our India business, excluding soaps, delivered double-digit volume growth, showing the strength of our core portfolio.”

After GST overhaul

India sales grew 4%, while volumes were up 3%. The company said the recent GST rate reduction — from 18% to 5% on soaps and select personal care products — would bolster long-term demand but caused near-term trade disruptions. Distributors and retailers cleared old inventory, hurting sales in soaps and hair color.

Home Care, one of GCPL’s largest verticals, grew 6%, led by air fresheners and fabric care products. Its newly launched toilet cleaner brand Godrej Spic, priced at ₹79 for 500 ml, marks the company’s entry into a ₹3,000-crore category growing at double digits.

Personal Care declined 2% in the quarter, mainly due to GST-linked disruptions in soaps. However, perfumes and deodorants continued to expand, supported by new launches like KS 99 and Amazon Woods 4X.

Ad expenses

GCPL increased its advertising and publicity expenses in the September 2025 quarter as it stepped up brand investments ahead of the festive season. Consolidated ad and publicity spending rose to ₹375.7 crore in Q2 FY26 from ₹313.8 crore in the previous quarter, a 19.7% sequential increase, while standalone spending climbed to ₹249.9 crore from ₹231.6 crore, up 7.9%.

Compared with the same period last year, the company’s consolidated ad outlay was marginally higher than ₹363.9 crore in Q2 FY25, while standalone spending was slightly lower than ₹263.6 crore.

The increase reflects GCPL’s push behind new launches such as Godrej Spic in toilet cleaners and KS99 and Amazon Woods 4X in personal care, even as it navigated the GST transition and soft international markets. The company maintained disciplined marketing investments relative to its 4% year-on-year sales growth, reinforcing its focus on brand strength and market share gains across key categories like soaps, air fresheners, and fabric care.

Mixed Global Picture

GCPL’s international portfolio was uneven. The Africa, USA, and Middle East business delivered strong 25% sales growth in rupee terms and 15% in constant currency, driven by hair fashion and air fresheners. Indonesia posted a 7% decline in revenue despite a 2% rise in volumes, as pricing pressures persisted.

Strategic Bet on Men’s Grooming

In a move to deepen its presence in premium personal care, GCPL signed a definitive agreement to acquire Muuchstac, a digital-first men’s grooming brand, from Trilogy Solutions Private Limited.

Founded by Ronak Bagadia and Vishal Lohia, Muuchstac is among India’s top online men’s facewash brands, with annual revenue of around ₹80 crore and EBITDA of ₹30 crore. The acquisition will help GCPL expand its reach in the ₹1,000-crore men’s facewash market, which is growing more than 25% annually.

“We are delighted to welcome Muuchstac to the Godrej family,” Sitapati said. “Its strong resonance among younger consumers and proven digital model make it a powerful addition to our personal care portfolio.”

The founders said they looked forward to scaling Muuchstac with GCPL’s distribution and innovation capabilities.

Looking Ahead

GCPL expects performance to strengthen in the second half of FY26, aided by normalized trade conditions and easing cost pressures. The company projects high single-digit growth in underlying volumes and revenues, with double-digit EBITDA growth in India and Africa.

Sitapati said GCPL’s focus will remain on “disciplined execution, innovation, and operational excellence” to deliver sustainable growth.