IGI Logo

Performance better than expected

Godrej Consumer Products (GCPL) released its pre-quarterly update for 3QFY26. Following are the key takeaways:

India Business

• Demand conditions in India improved progressively during the quarter.
• Management remains confident of a gradual consumption recovery over the next few quarters, driven by easing inflation and better affordability following lower GST rates.
• Standalone Business (India):
• Standalone business is expected to deliver double-digit revenue growth (est: 8%; 3% in 3QFY25), with close to double-digit underlying volume growth (UVG) (est: 8%; flat in 3QFY25), albeit on a supportive base.
• EBITDA margin is expected to revert to its normal level (24-26%), supported by benign input costs, cost discipline, calibrated pricing, and operating leverage (est: 24.4%; 22.7% in 3QFY25).

Segment Performance

• Home Care:
• The home care segment remained the key growth driver.
• The segment is expected to deliver double-digit value growth, driven by strong consumer demand and effective in-market execution.
• Personal Care:
• The segment is expected to deliver mid-single-digit value growth, mainly driven by a recovery in the soaps category.

International Business

• Indonesia:
• Competitive pricing pressures continued across key categories during the quarter.
• Early signs of stabilization are visible, and management expects improvements in revenue and profitability from FY27 onwards.
• GAUM (Godrej Africa, USA & Middle East):
• The cluster is expected to deliver strong and consistent topline and bottomline growth.
• It is expected to deliver double-digit revenue and profit growth in line with GCPL’s FY26 guidance.

Consolidated Business

• Consolidated business is expected to deliver close to double-digit rates in INR terms (est: 10%; 3% in 3QFY25) and double-digit EBITDA growth (est: 14%; -16% in 3QFY25).

For More Research Reports : Click Here 

For More Motilal Oswal Securities Ltd Disclaimer
http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html
SEBI Registration number is INH000000412