Godrej Consumer Products Sees Temporary Impact from GST Reform; Expects Recovery in H2 FY26

Mumbai, October 7, 2025 – Godrej Consumer Products Ltd. (NSE: GODREJCP) shared a pre-quarterly business update for Q2 FY26, highlighting short-term disruptions following the government’s recent GST reforms but reaffirming confidence in long-term growth. The company stated that the GST rate cut from ~18% to 5% across key FMCG segments — including soaps, talcum powders, shampoos, and shaving creams — will drive structural volume growth over time. GCPL has already passed on these benefits to consumers effective September 22, 2025. However, trade channel adjustments and inventory liquidation have temporarily impacted demand and profitability. As a result, GCPL expects mid-single digit value growth with low-single digit underlying volume growth (UVG) for its standalone business. Segment-wise, the Home Care portfolio continues its strong trajectory with high-single digit growth, while Personal Care may see a low-single digit decline due to soaps. The company views this as a transitory phase before normalisation. On the international front, Indonesia witnessed intensified competitive pricing, leading to a low-single digit value decline, though UVG remains positive. Meanwhile, the Godrej Africa, USA & Middle East (GAUM) segment is on track for its third consecutive quarter of double-digit growth, both in volume and value terms. At a consolidated level, GCPL anticipates mid-single digit revenue growth but expects a temporary EBITDA decline due to GST-led short-term headwinds. The management remains optimistic about profitability recovery in the second half of FY26. ✅ Disclaimer: This article is for informational purposes only and should not be considered as investment advice. 👉 Follow for more corporate and market updates.