Godrej Consumer (GCPL) on Friday reported a 6.5% year-on-year decline in consolidated net profit to Rs 459 crore for the September quarter (Q2FY26), coming below Street estimates of Rs 512 crore for the period. The drop came amid GST transitional issues, which was flagged by the company in its quarterly update earlier this month.
Q2 consolidated revenue rose 4.3% y-o-y to Rs 3,825 crore, in line with Street estimates, though Ebitda declined 3.5% y-o-y to Rs 733 crore, below Street estimates. Ebitda margins fell 150 bps to 19.2% versus 20.7% reported last year, even as the company said that it expected the second half to be better than the first half of the year.
GCPL also said that it is acquiring male grooming brand Muuchstac for Rs 449 crore from Mumbai-based Triology Solutions. The transaction is an all-cash deal, where GCPL will make an upfront payment of Rs 289 crore on the signing date, followed by Rs 160 crore after 12 months of the transaction.
The acquisition, more importantly, will help GCPL step up its presence in men’s grooming, specifically, men’s face wash, where Muuchstac has leadership position, it said.
The brand is among the top two players in online men’s facewash, supported by a sharp value proposition and an online go-to-market strategy, GCPL said. Over the twelve months ending September 2025, the Muuchstac business recorded revenue (Ind-AS) of approximately Rs 80 crore and Ebitda (adjusted for one-offs) of around Rs 30 crore.
“Muuchstac’s strong resonance among younger consumers, high profitability, and proven digital execution model make it a powerful addition to our personal care portfolio,” Sudhir Sitapati, managing director & CEO, GCPL, said on Friday.
GCPL is expected to leverage its distribution, supply chain, and innovation strengths to scale up Muuchstac across offline channels. The company is also likely to expand the brand’s presence across men’s skin care, sector experts said, as it eyes high-growth and high-margin categories.
The Indian facewash market, estimated at Rs 6,000–7,000 crore, is growing at 15–20% per annum, driven by rising awareness of skincare and an ongoing shift from soaps to more specialised cleansing formats, sector analysts said. Within this, the men’s facewash category, valued at about Rs 1,000 crore, is growing at over 25% annually, making it one of the fastest-growing segments in personal care.
At a broader level, Sitapati said that the recent GST rate cut was a “welcome structural reform”, but caused short-term disruptions as trade channels adjusted, particularly in soaps and hair colour. The company’s India business remained healthy, with sales up 4% and volume growth of 3%, supported by double-digit growth in non-soap categories.
Internationally, performance was mixed — Indonesia saw a mid-single-digit volume uptick but a 7% sales decline in constant currency terms, while Africa, the US, and West Asia grew strongly with 25% sales growth in rupee terms. Latin America and others saw a 9% decline in rupee sales.
