The government’s GST rate reduction is seen as a positive step towards strengthening consumer demand. Nearly one-third of GCPL’s portfolio—primarily toilet soaps along with smaller categories such as talcum powders, shampoos, and shaving creams—now benefits from a reduced GST rate of 5%, down from around 18%.
In line with its commitment to consumers, GCPL has already passed on these benefits effective 22 September 2025. The company remains confident that these reforms will serve as a structural growth driver, enabling volume-led expansion and supporting its long-term value creation agenda for all stakeholders.
However, GCPL said the GST rate cuts has resulted to some short-term adjustments across trade channels, as distributors and retailers focused on liquidating existing inventories. This has delayed the flow of new orders and temporarily deferred consumer purchases, impacting both growth and profitability. Consequently, the standalone business is expected to deliver mid-single digit value growth, supported by low-single digit underlying volume growth (UVG).
Within its categories, the Home Care portfolio continues to demonstrate strong momentum, likely resulting in high-single digit value growth, while the Personal Care segment is expected to decline in the low-single digits, largely influenced by the soaps category. The company views this as a transitory adjustment and remains confident in the long-term benefits of the reforms.
On the international front, Indonesia experienced heightened competitive pricing activity across key categories, likely resulting in a low-single digit decline in value growth, albeit with slightly positive volume growth. Meanwhile, the GAUM region (Godrej Africa, USA, and Middle East) is expected to deliver its third consecutive quarter of strong topline performance, with double-digit value and volume growth projected.
At the consolidated level, GCPL anticipates mid-single digit revenue growth in INR terms. However, the GST transition in India is expected to have a short-term impact on profitability, with EBITDA likely to decline in the current quarter. Despite this temporary setback, the company remains confident in its strategic plans and positive about performance improvements in the second half of the financial year.
Godrej Consumer Products is an Indian consumer goods company. The company's products include soap, hair colorants, toiletries and liquid detergents.
The company’s consolidated net profit rose marginally to Rs 452.45 crore in Q1 FY26, compared to Rs 450.69 crore in the same quarter last year. Revenue from operations increased 10% year-on-year to Rs 3,641.88 crore for the quarter ended 30 June 2025.
The scrip declined 1.72% to Rs 1,132.60 on the BSE.