Shares of Godrej Consumer Products Ltd (GCPL) fell 1.77% to Rs 1,132.10 in Tuesday’s session after the company guided for mid-single-digit consolidated revenue growth for the second quarter of FY26.
The FMCG major, part of the diversified Godrej Group, said it expects volume-led growth following the recent GST rate cuts, which saw nearly one-third of its product portfolio move from the 18% to the 5% tax bracket. The revised GST structure covers key categories such as toilet soaps, talcum powders, shampoos, and shaving creams.
The company stated that it has passed on the tax benefits to consumers from September 22, 2025, anticipating a boost in volume demand and long-term value creation.
Domestically, GCPL expects mid-single-digit value growth with low-single-digit underlying volume growth (UVG). While the home care segment continues to show strong high-single-digit value growth, the personal care division may see a low-single-digit decline due to weaker soap sales.
On the international front, the company reported mixed trends. Its Indonesia operations continue to face pricing pressure, resulting in a low-single-digit value decline but slightly positive UVG. However, the GAUM markets (Africa, USA, and Middle East) are expected to sustain double-digit value and volume growth for the third consecutive quarter.
Godrej Consumer cautioned that the GST transition could temporarily weigh on EBITDA as trade channels clear old inventory marked with pre-GST rates. Despite this, the company remains optimistic about stronger performance in H2 FY26, backed by improving demand trends and operational stability.
GCPL, known for brands such as Godrej No.1, Cinthol, Godrej Expert, and Ezee, operates across India, Africa, Southeast Asia, and the Middle East, spanning categories like toiletries, hair care, insecticides, and home cleaning products.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
