Godrej Consumer shares in focus as company sees steady Q2 growth amid GST tailwinds – News Air Insight

Shares of Godrej Consumer Products are likely to be in focus on Wednesday after the company announced that it expects consolidated revenue growth in the mid-single digits for the second quarter of fiscal year 2026 (FY26), driven by tax cuts on key product lines and a resilient performance across geographies.

Godrej Consumer Products Ltd (GCPL), part of the diversified Godrej Group and owner of brands such as Godrej No.1, Cinthol, Godrej Expert, and Ezee, said nearly one-third of its product portfolio is now taxed at 5%, down from 18%, following the latest Goods and Services Tax (GST) reforms. The affected products include toilet soaps, talcum powders, shampoos, and shaving creams.

The company said the tax benefit has been passed on to consumers from September 22, 2025, which is expected to “support volume-led growth and long-term value creation.”

Domestically, GCPL’s standalone business is projected to see mid-single-digit value growth, with underlying volume growth (UVG) in low-single digits. Within categories, the home care portfolio is showing strong momentum, posting high-single-digit value growth, while personal care is expected to decline in the low-single digits, primarily due to soaps.

Mixed trends in overseas markets

Internationally, performance remains uneven. The Indonesia business continues to face intense pricing pressure, resulting in low-single-digit value decline but slightly positive UVG. In contrast, the GAUM markets, Africa, USA, and the Middle East, are set to deliver double-digit value and volume growth for the third consecutive quarter.

GCPL, which operates across India, Africa, Southeast Asia, and the Middle East, said it remains a leading player in personal care, home care, and international consumer products, with a presence across premium and mass-market segments.

Short-term margin pressure likely

The company cautioned that the GST transition may temporarily impact EBITDA due to short-term trade disruption as channels clear old inventory with pre-GST cut labels. However, it remains optimistic about its performance in the second half of the financial year.

Shares of Godrej Consumer Products ended marginally higher at Rs 1,152.45 on the BSE on Tuesday.

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