GCPL holds steady amid GST turbulence; enters men’s grooming with Muuchstac acquisition

Godrej Consumer Products Limited (GCPL) reported a resilient Q2 FY26 performance, navigating the impact of India’s GST transition and macro headwinds in Indonesia with steady topline growth and a strategic acquisition in the men’s grooming space.

Consolidated sales rose 4% year-on-year (both in INR and constant currency), backed by a 3% underlying volume growth, while EBITDA margins stood at 19.3%. Net profit before exceptional items declined 2%, largely reflecting temporary transition costs.

“Q2 FY26 has been a resilient quarter for GCPL, especially given the backdrop of the GST transition in India and continued macroeconomic challenges in Indonesia,” said Sudhir Sitapati, Managing Director & CEO, Godrej Consumer Products. “Despite these headwinds, our India business excluding soaps delivered double-digit volume growth, reflecting the strength of our core portfolio and execution.”

India: steady base amid GST shake-up

India sales grew 4% with a 3% volume uptick, even as the GST rate reduction (from 18% to 5%) caused short-term trade disruptions. The company expects the reform to structurally strengthen long-term consumer demand.
Home Care grew 6%, led by air fresheners and fabric care, while personal care declined 2% due to channel adjustments in soaps and hair colour. Sitapati noted this was “the last weak quarter for margins,” guiding for a return to normative levels in the second half.

GCPL also entered the ₹3,000 crore toilet cleaner market with Godrej Spic, launched in select southern states at ₹79 for 500 ml — marking another step in expanding its Home Care portfolio.

Global: contrasting performance

The Africa, USA and Middle East cluster delivered standout 25% sales growth in INR terms and 20% EBITDA growth, led by hair fashion and air fresheners.
Indonesia, meanwhile, saw stable underlying volume growth (2%) but a 7% revenue decline amid ongoing pricing pressure.

Strategic pivot: acquiring Muuchstac

In a move that broadens its personal care portfolio, GCPL signed a definitive agreement to acquire Muuchstac, one of India’s fastest-growing men’s grooming brands. The digital-first brand is a top-two player in men’s facewash online and among the top three overall, with FY25 revenues of around ₹80 crore and EBITDA of ₹30 crore.

“Muuchstac’s strong resonance among younger consumers, high profitability, and proven digital execution make it a powerful addition to our personal care portfolio,” Sitapati said. “This acquisition enhances our participation in the fast-growing men’s grooming segment and supports our vision of building a future-ready, innovation-led GCPL.”

Founders Ronak Bagadia and Vishal Lohia added, “It’s a proud moment to see Muuchstac become part of the Godrej family. We look forward to scaling the brand further and redefining men’s skincare in India.”

The road ahead

Sitapati reaffirmed that GCPL expects stronger sequential performance in H2 FY26, with high single-digit volume growth in the standalone business and double-digit EBITDA growth in India and GAUM regions.
“We remain firmly confident in our strategy, the resilience of our portfolio, and the strength of our brands,” he said. “With disciplined execution and continued focus on innovation, we are well positioned to deliver sustainable and profitable growth ahead.”