Godrej Consumer Products Limited (GCPL) has announced its financial results for the second quarter, revealing a mixed performance amidst challenging market conditions. The company also disclosed a strategic acquisition in the male grooming segment.

Q2 Financial Highlights

GCPL reported a consolidated revenue growth of 4% year-on-year, reaching ₹3,802.46 crore for the quarter ended September 30. This growth was supported by an underlying volume growth of 3%. However, the company faced headwinds in profitability:

• Consolidated EBITDA declined by 3% to ₹733 crore
• Net profit decreased by 7% to ₹459 crore
• EBITDA margin compressed to 19.17% from 20.72% in the previous year

The company's performance was impacted by the recent GST transition in India and ongoing macroeconomic challenges in Indonesia.

Segment Performance

India business saw a 4% growth in sales, with a 3% increase in volumes. The Home Care segment grew by 6%, while Personal Care declined by 2%, primarily due to the GST transition impact on soaps.

Indonesia continued to face macro and pricing pressures, resulting in a 7% decline in revenue. However, the business maintained a stable underlying volume growth of 2%.

Africa, USA, and Middle East (GAUM) delivered strong performance with a 25% sales growth in INR terms and 15% in constant currency.

Strategic Acquisition: Muuchstac

GCPL announced the acquisition of the FMCG business under the 'Muuchstac' brand from Trilogy Solutions Private Limited. This acquisition marks GCPL's entry into the fast-growing men's grooming segment.

Key details of the acquisition:

• Muuchstac is among the top two players in online men's facewash and top three overall
• The brand recorded revenues of approximately ₹80 crore in the twelve months ending September
• EBITDA (adjusted for one-offs) was around ₹30 crore, reflecting strong profitability
• The acquisition will be completed via a slump sale

Management Commentary

Sudhir Sitapati, Managing Director and CEO of GCPL, commented on the results: "Q2 has been a resilient quarter for Godrej Consumer Products Limited, especially given the backdrop of the GST transition in India and continued macroeconomic challenges in Indonesia. Despite these headwinds, our India business, excluding soaps, has delivered double-digit underlying volume growth, reflecting the strength of our core portfolio and execution."

Regarding the Muuchstac acquisition, Sitapati added, "This acquisition enhances our participation in the fast-growing men's grooming segment and supports our vision of building a future-ready, innovation-led GCPL."

Outlook

GCPL expects its performance to strengthen sequentially, with the second half delivering a stronger trajectory than the first. The company remains confident in achieving high single-digit underlying volume growth in its Standalone business and high single-digit revenue growth at a consolidated level.

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹5 per share (500% on the face value of ₹1 each).

As GCPL navigates through the transitional impact of GST changes and global economic challenges, the company's strategic moves, including the Muuchstac acquisition, position it for potential growth in the evolving FMCG landscape.

Godrej Consumer Products Limited (GCPL) has announced a crucial board meeting scheduled for October 31, 2025, to review its financial performance and consider an interim dividend. This development comes as the company prepares to disclose its unaudited financial results for the second quarter and first half of the fiscal year 2025-26.

Key Meeting Agenda

The board meeting will focus on two primary objectives:

1. Review of Financial Results: The board will examine and record the unaudited financial results for the quarter and half-year ended September 30, 2025.
2. Interim Dividend Consideration: Directors will deliberate on the declaration of an interim dividend for shareholders.

Important Dates

For investors and stakeholders, two key dates are of particular importance:

The record date, set for November 7, 2025, will determine the eligibility of shareholders to receive the interim dividend, should the board decide to declare one.

Compliance and Transparency

GCPL's announcement adheres to the regulations set forth by the Securities and Exchange Board of India (SEBI), specifically Regulations 29 and 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This compliance underscores the company's commitment to transparency and timely disclosure of material information to its stakeholders.

The upcoming board meeting and potential dividend declaration reflect Godrej Consumer Products' ongoing engagement with its shareholders and its adherence to corporate governance standards. Investors and market analysts will be keenly watching the outcome of this meeting, as it may provide insights into the company's financial health and its approach to shareholder returns in the current economic climate.

As the meeting date approaches, market participants may closely monitor GCPL's stock performance and any additional announcements from the company. The financial results and any dividend declaration could potentially influence investor sentiment and the stock's near-term market performance.