Godrej Consumer Products (GODREJCP) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw resilient performance amid GST transition in India and macroeconomic challenges in Indonesia, with consolidated revenue up 4% year-over-year and EBITDA up 4%, while net profit declined due to GST impacts and macro headwinds.

• India (ex-soaps) delivered double-digit volume growth, with Home Care leading at 6% growth and Personal Care declining 2%.

• International business saw mixed results: Africa, USA & Middle East grew 25%, Indonesia sales declined 7% but gained market share.

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025, were approved with an unmodified auditor's review opinion.

• Interim dividend of ₹5 per share declared for FY 2025-26, with record date on November 7, 2025.

Financial highlights

• Consolidated revenue grew 4% in INR terms for Q2 and reached ₹7,486.95 crore for H1 FY26.

• Underlying volume growth was 3% year-over-year.

• EBITDA margin stood at 19.3% for Q2; consolidated net profit after tax for H1 FY26 was ₹911.79 crore.

• Net profit (excluding exceptionals) declined 2% year-over-year to ₹487 crore.

• Basic EPS for H1 FY26 was ₹8.91, slightly down from ₹9.21 in H1 FY25.

Outlook and guidance

• Expect high single-digit underlying volume and consolidated revenue growth for FY26, with India and GAUM businesses targeting double-digit EBITDA growth.

• Margins in India are guided to return to the normative 24%-26% band in H2, likely at the lower end.

• Board expects continued growth with strategic acquisitions and ongoing restructuring in international markets.

• GST reforms expected to drive long-term volume-led growth, with Personal Wash category rebounding post-GST reduction.