Godrej Consumer Products

Godrej Consumer Products Limited reported consolidated revenue growth of 4% in INR terms for Q2 FY26, supported by 3% underlying volume growth. The company's India business grew 4% in sales and 3% in volumes, while facing GST-related trade disruptions that particularly impacted soaps and hair color categories. EBITDA margins stood at 19.3% and net profit before exceptions declined by 2%. The Indonesia business faced macro and pricing pressures with 2% volume growth but negative 7% revenue growth. In contrast, Africa, USA and Middle East delivered 25% sales growth in INR terms. The company announced the acquisition of men's grooming brand Muuchstac for approximately INR 300 crores, which generated INR 80 crores revenue and INR 30 crores EBITDA in the last 12 months. Management expects high single-digit underlying volume growth for the full year and anticipates margins to return to normative levels of 24-26% in the second half.

Godrej Consumer Products shares jumped 6% to Rs 1,185.95 following quarterly results and Goldman Sachs raising its target price to Rs 1,425. The company reported a consolidated net profit of Rs 459.3 crore, down 6.5% from Rs 491.3 crore in the same period last year. Revenue grew 4.3% year-on-year to Rs 3,825 crore, while EBITDA declined 3.5% to Rs 733.6 crore with operating margin falling to 19.2% from 20.7%. India operations showed steady growth with 4% sales increase and 3% volume growth, led by strong double-digit expansion in non-soap categories. CEO Sudhir Sitapati noted that GST rate cuts temporarily disrupted trade channels in soaps and hair colour segments. International performance was mixed - Indonesia saw mid-single-digit volume growth but 7% drop in constant-currency sales, while Africa, US, and Middle East recorded 25% growth in rupee terms. Latin America reported 9% decline in rupee revenue. Goldman Sachs maintained its Buy rating citing expected reversal of GST transition headwinds and highlighted the company's acquisition of men's face wash brand Muuchstac. Citi maintained Buy rating with Rs 1,350 target, while Elara Capital kept Accumulate rating with reduced target of Rs 1,240.

Godrej Consumer Products has forecasted high single-digit growth for both its India business and consolidated revenue for FY26. The company expects Indian business margins to be at the lower end of the 24-26% range during the second half of FY26. For the full year, the company anticipates double-digit EBITDA growth for both its Indian and GOM (Greater Overseas Markets) businesses.