Godrej Consumer Q2 FY26 Results: 4% Sales Growth, Rs 80 Crore Muuchstac Acquisition Strengthens Grooming Portfolio

Godrej Consumer Products Limited (GCPL) announced its financial results for the quarter ended September 30, 2025 (Q2 FY 2026), along with signing a definitive agreement to acquire the men’s grooming brand Muuchstac.

Q2 FY 2026 Performance:
GCPL reported consolidated sales growth of 4 per cent year-on-year in both INR and constant currency terms. Underlying volume growth stood at 3 per cent. EBITDA margins were 19.3 per cent, while consolidated net profit declined by 2 per cent year-on-year (excluding exceptional items) due to temporary headwinds.

India Business:
India sales grew 4 per cent and volumes increased 3 per cent. However, EBITDA declined 8 per cent to Rs 512 crore. The company faced short-term disruptions from the GST rate reduction, which led to inventory clearance and pricing adjustments, particularly affecting Soaps and Hair Colour categories. Despite this, nearly one-third of the company’s portfolio now benefits from a reduced GST of 5 per cent, with price benefits passed to consumers since September 22, 2025.

Home Care grew 6 per cent, led by Air Fresheners and Fabric Care. Personal Care declined 2 per cent, mainly due to the GST impact, although market share gains continued in Soaps. GCPL entered the Rs 3,000 crore Toilet Cleaner segment with the launch of Godrej Spic, priced at Rs 79 for 500 ml, initially in South India. Other recent launches, including Godrej Fab, Goodknight Agarbatti, Aer Plug, Amazon Woods 4X, and KS 99, continued to perform well.

International Business:
The Africa, USA, and Middle East (GAUM) segment reported 25 per cent sales growth in INR terms (15 per cent in constant currency) and 20 per cent EBITDA growth, supported by strong performance in Hair Fashion and Air Fresheners. Indonesia operations saw a 7 per cent decline in sales due to macro and pricing pressures, though underlying volume growth of 2 per cent and market share gains were maintained.

Muuchstac Acquisition:
GCPL has signed a definitive agreement to acquire the FMCG business of Muuchstac, one of India’s fastest-growing men’s grooming brands. Muuchstac holds a leading position in the men’s facewash category, using a digital-first and influencer-led marketing model. For the twelve months ending September 2025, the brand reported revenues of around Rs 80 crore and EBITDA of approximately Rs 30 crore. The acquisition strengthens GCPL’s Personal Care portfolio and expands its reach in the fast-growing men’s grooming segment, which is expanding at over 25 per cent annually.

Godrej Consumer Products Limited (GCPL) is a fast-moving consumer goods (FMCG) company engaged in the manufacture and marketing of household and personal care products. The company operates across diverse geographies with a strong portfolio of over 10 leading brands, including GoodKnight (mosquito repellents), HIT (pest control products), Cinthol (personal care), Godrej No.1 (soaps), Expert (hair colour), Darling (hair extensions), Mitu (baby care), Stella and Aer (air fresheners), and MR Magic (liquid hand wash). These top 10 brands together contribute around 70 per cent of GCPL’s total revenue.

The Order Book stands at Rs 1,14,000 crore as of June 30, 2025, excluding GST and including its share in Joint venture. The stock gave returns of 67 per cent in 5 years.