Godrej Consumer Products Reports Q2 FY2026 Results; Acquires Muuchstac Brand

Godrej Consumer Products Limited (GCPL) has announced its financial results for the second quarter of fiscal year 2026, demonstrating resilience amid the GST transition in India and ongoing macroeconomic challenges in Indonesia. The company also revealed its strategic acquisition of the Muuchstac brand, marking a significant step into the fast-growing men's grooming segment.

Q2 FY2026 Financial Highlights

Consolidated sales grew by 4% year-on-year to ₹3,802.46 crore, supported by a 3% increase in underlying volume growth.
India business sales increased by 4% to ₹2,362.22 crore, with a 3% volume growth.
EBITDA margins stood at 19.3%, with a 3% decline in consolidated EBITDA.
Net profit (without exceptional items and one-offs) decreased by 2% year-on-year.

Segment Performance

India Business

Home Care segment grew by 6%, driven by strong performance in Air Fresheners and Fabric Care.
Personal Care segment declined by 2%, primarily due to the GST transition impact on soaps.
The company launched Godrej Spic, marking its entry into the Toilet Cleaner category.

International Business

Indonesia sales declined by 7% in constant currency terms, facing ongoing pricing pressures.
Africa, USA, and Middle East delivered 25% sales growth in INR terms (15% in constant currency).

GST Transition Impact

The recent GST rate reduction led to short-term trade disruptions as channels adjusted to new pricing and cleared old inventory. This particularly affected the Soaps and Hair Colour categories. GCPL expects demand to normalize in the coming months as trade channels stabilize.

Muuchstac Brand Acquisition

GCPL announced the acquisition of the FMCG business under the 'Muuchstac' brand via slump sale from Trilogy Solutions Private Limited. Key highlights of the acquisition include:

Muuchstac is one of India's fastest-growing men's grooming brands, with a strong position in the men's facewash segment.
The brand recorded revenues of approximately ₹80.00 crore and adjusted EBITDA of around ₹30.00 crore over the twelve months ending September 2025.
The acquisition will be completed in two tranches:
1. Initial payment of ₹289.00 crore
2. Performance-based second tranche of approximately ₹160.00 crore after 12 months

Management Commentary

Sudhir Sitapati, Managing Director and CEO of GCPL, commented on the results: "Q2 FY26 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."

Growth Strategy and Outlook

Godrej Consumer Products has provided guidance for mid-to-high single-digit volume growth. The company plans to drive this growth through innovation across its home, personal, and household care product categories. The strategy includes:

Accelerating rural market penetration
Premiumization of products
Expanding its African portfolio to sustain margin improvement

GCPL expects its performance to strengthen sequentially through FY26, 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.

The acquisition of Muuchstac is expected to leverage GCPL's distribution network and innovation capabilities to accelerate the brand's growth, particularly in offline channels where significant expansion opportunities exist.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.49%	-1.04%	-4.14%	-11.26%	-12.82%	+70.51%

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

Segment	Revenue (₹ crore)	Growth (YoY)
India	2,362	4%
Indonesia	479	-7%
Africa, USA & Middle East	803	25%
Latin America and Others	223	-9%

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.