Godrej Consumer Products Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, demonstrating strong operational performance across its business segments. The Board of Directors approved the results at their meeting held on January 23, 2026, along with declaring an interim dividend for shareholders.

Financial Performance Overview

The company delivered robust financial results for Q3FY26, with consolidated revenue from operations reaching ₹4,099.12 crores compared to ₹3,749.11 crores in the corresponding quarter of the previous year. Net profit after tax for the quarter stood at ₹497.91 crores, showing strong profitability metrics.

For the nine-month period ended December 31, 2025, consolidated revenue from operations increased to ₹11,586.07 crores from ₹10,766.34 crores in the previous year, while net profit reached ₹1,409.70 crores compared to ₹1,440.31 crores in the corresponding period.

Segment-wise Performance

The company's diversified geographical presence contributed to its overall performance, with India remaining the largest revenue contributor.

Dividend Declaration

The Board of Directors declared an interim dividend of ₹5 per share, representing 500% on the face value of ₹1 each, for the financial year 2025-26. The record date for determining eligible shareholders is January 30, 2026, and the dividend will be paid on or before February 22, 2026.

Strategic Acquisition

During the period, the company completed the acquisition of the FMCG business under the 'Muuchstac' brand through a slump sale from Trilogy Solutions Private Limited. The transaction, completed on November 10, 2025, involved a purchase consideration of ₹425.09 crores, with ₹289 crores paid upfront. The acquisition has been provisionally allocated towards Brand (₹375.30 crores), Goodwill (₹43.73 crores), and other net assets (₹6.06 crores).

Exceptional Items Impact

The company reported exceptional items totaling ₹91.00 crores for the quarter, primarily comprising statutory impact of new Labour Codes on gratuity and leave encashment benefits (₹44.17 crores), litigation costs related to Strength of Nature LLC operations, and acquisition-related expenses for the Muuchstac brand.

Key Financial Ratios

The company maintained healthy financial ratios, with a debt-equity ratio of 0.35, current ratio of 0.99, and net profit margin of 12.2% for the quarter. The operating margin improved to 21.6% compared to 20.1% in the previous year, indicating enhanced operational efficiency.

Godrej Consumer Products shares declined 0.61% to ₹1,246.40 by mid-afternoon on Wednesday, despite multiple brokerages upgrading their estimates following the company's encouraging Q3 FY26 business update. The stock opened higher at ₹1,273.90 but failed to sustain gains, trading within a range of ₹1,237-1,273.90 with 10.42 lakh shares changing hands.

Strong Q3 FY26 Performance Exceeds Expectations

The consumer goods major released its Q3 FY26 business update on Monday, indicating double-digit standalone revenue growth driven by nearly double-digit underlying volume growth. The performance exceeded initial brokerage projections, prompting analysts to revise their forecasts upward across key metrics.

Brokerage Upgrades and Target Prices

Nuvama upgraded its estimates substantially following the strong quarterly update. The brokerage now expects revenue and EBITDA to grow 10% and 21% year-on-year respectively, compared to earlier projections of 8% and 18%. Nuvama raised its volume growth estimate to 10% from 8%, maintaining a 'Buy' rating with a target price of ₹1,350.

Nomura also retained its 'Buy' rating with a target price of ₹1,520, noting that consolidated revenue growth close to double digits exceeded expectations. The brokerage forecasts consolidated margins of 20.7% for the quarter, driving 12.8% year-on-year EBITDA growth.

Segment-wise Growth Outlook

The company's business segments are expected to deliver varied growth rates during the quarter. Home care is projected to deliver double-digit growth around 10%, while personal care should grow in mid-single digits at approximately 5%, aided by a recovery in the soaps category.

Standalone EBITDA margins are expected to return to normalised levels of 24-26%, supported by favourable input costs and improved operating leverage. This margin improvement reflects the company's operational efficiency gains during the quarter.

Regional Performance and Market Conditions

The company cited strengthening demand conditions in India during the quarter, expressing confidence in gradual consumption improvement driven by falling inflation and lower GST rates. However, regional performance showed mixed results across different markets.

Indonesia continues facing competitive pricing pressures, though management sees early stabilisation signs in the market. The GAUM cluster maintained strong performance across revenue and profitability metrics, contributing positively to overall results.

Despite the positive business update and brokerage upgrades, the stock's decline reflects broader market sentiment and profit-booking activities. SBI Securities maintained a neutral short-term stance despite acknowledging the improving consumption trajectory and consolidated revenue approaching double-digit growth.