Godrej Consumer Products reported muted profit growth in Q3 FY26, as employee costs rose following changes to the labour code. The FMCG company of the Godrej Group reported a 0.08 per cent YoY decline in net profit in the quarter.
Godrej Consumer reported a consolidated net profit of Rs 497.9 crore in Q3 FY26, compared to a consolidated net profit of Rs 498.31 crore in Q3 FY25.
While the company’s net profit remained flat in the quarter, its revenue from operations grew by 8.78 per cent year on year. Godrej Consumer reported consolidated revenue of Rs 4,099 crore from operations in Q3 FY26. The company’s revenue was at Rs 3,768 crore in the corresponding quarter of the previous fiscal year.
“For the year, we remain confident of achieving high single-digit revenue growth at a consolidated level. Our India business is expected to deliver continued growth performance while holding normative EBITDA margins in the coming quarter. GAUM continues to perform well and deliver on its stated objectives of double-digit revenue and profit growth for the year.”, Sudhir Sitapati, Managing Director and CEO, GCPL, said in a statement.
Dividend declared
Godrej Consumer has declared an interim dividend of Rs 5 per equity share for FY26. The company has set January 30 as the record date and will pay the dividend to the eligible shareholders on or before February 22, 2026.
Employee costs and other expenses mount
Godrej Industries said that the implementation of the New Labour Code resulted in an impact of Rs 44.17 crore for the company. The company’s employee benefit expenses were Rs 296 crore in Q3 FY25 and Rs 269 crore in Q2 FY26, rising to Rs 328 crore in Q3 FY26.
“The incremental impact consisting of gratuity and leave encashment benefits of Rs 44.17 crore primarily arises due to change in wage definition.” Godrej Consumer said in exchange filing.
Further, Godrej Consumer said it incurred litigation costs of Rs 23.31 crore in the quarter related to product litigation, including a class action suit over its hair relaxer products.