Godrej Consumer Products (GCPL) reported flat growth in third-quarter (Q3FY26) net profit at Rs 498 crore, while revenue rose 8.8% to Rs 4,099 crore, driven by the India and Africa operations. Both profit and revenue in Q3 were below street estimates of Rs 587 crore and Rs 4,114 crore for the period.
Earnings before interest tax depreciation and amortisation (Ebitda) for the quarter came in at Rs 880 crore, higher than the forecast of Rs 862 crore for the December quarter, increasing 16.5% from Rs 756 crore reported in the corresponding period last year. Ebitda margin for the quarter stood at 21.5%, higher than the Bloomberg consensus estimate of 20.7% for the period, and above last year’s 20.1%.
India and Africa
In the quarter to December, the company reported one-time expenses of Rs 91 crore, including the impact of the new labour code, litigation costs incurred by Strength of Nature, a Godrej company in the US, which makes haircare products, costs related to the acquisition of the FMCG business under the Muuchstac brand in male grooming in India, and other expenses.
Consolidated sales for the quarter grew 9% in INR terms and 7% in constant currency year-on-year, supported by underlying volume growth of 7%, the firm said.
In India, the company reported Q3FY26 sales of Rs 2,484 crore, up 11% year-on-year, with underlying volume growth of 9%. Ebitda for the Indian business grew 22% to Rs 616 crore. Among categories, home care posted 12% growth, while personal care grew 7%.
Global Resilience
In Indonesia, GCPL faced pricing pressures but saw early signs of stabilisation. Underlying volume growth reached 5%, led by shampoo, home care and baby care, although sales declined 3% in both constant currency and INR terms due to competitive pricing. Ebitda grew 2% on the back of strict cost discipline and controls, with expectations for improved operating conditions in FY27.
Africa, the US, and the Middle East delivered stronger performance, with consolidated sales growing 19% in INR and 8% in constant currency terms. Ebitda in these markets grew 18%, driven by hair fashion and air fresheners. Hair care continued to show double-digit growth across Africa, while the Aer Pocket brand in air purifiers gained strong traction across key markets.
The board of directors approved an interim dividend for FY26 of Rs 5 per share, representing 500% on equity shares with a face value of Rs 1 each. The record date to determine the shareholders eligible for the dividend has been fixed as January 30. The dividend will be paid on or before February 22.