Earnings Review
Godrej Consumer Q3 PAT, revenue miss estimates
This story was originally published at 18:33 IST on 23 January 2026
Register to read our real-time news.Informist, Friday, Jan. 23, 2026
Please click here to read all liners published on this story
--Godrej Consumer Oct-Dec consol net profit INR 4.98 bln
--Analysts saw Godrej Consumer Oct-Dec consol net profit at INR 5.87 bln
--Godrej Consumer Oct-Dec consol revenue INR 40.99 bln
--Analysts saw Godrej Consumer Oct-Dec consol revenue at INR 41.18 bln
--Godrej Consumer to pay INR 5 per share interim dividend
--Godrej Consumer Oct-Dec consol PAT INR 4.98 bln, unchanged on year
--Godrej Consumer Oct-Dec consol revenue INR 40.99 bln vs INR 37.68 bln
--Godrej Consumer interim dividend record date is Jan 30
--Godrej Consumer Apr-Dec consol PAT INR 14.10 bln vs INR 14.40 bln year ago
--Godrej Consumer Apr-Dec consol revenue INR 115.86 bln vs INR 107.66 bln
--Godrej Consumer Oct-Dec net profit includes one-time cost INR 910 mln
--Godrej Consumer Oct-Dec profit excluding exceptional cost INR 5.89 bln
--Godrej Consumer Oct-Dec advt, publicity cost INR 3.41 bln vs INR 3.64 bln
--Godrej Consumer Oct-Dec consol India sales INR 25.10 bln vs INR 22.62 bln
--Godrej Consumer Oct-Dec consol Indonesia sales INR 4.94 bln vs INR 5.08 bln
--Godrej Consumer Oct-Dec consol Africa revenue INR 9.23 bln vs INR 7.72 bln
--Godrej Consumer Oct-Dec consol operating margin 21.6% vs 20.1% year ago
--Godrej Consumer Oct-Dec consol underlying volume grew 7% on year
--Godrej Consumer Q3 consol sales up 7% YoY in constant currency
--Godrej Consumer: Confident of high single-digit consol sales growth in FY26
--Godrej Consumer: Macro, pricing in Latin America may hit FY26 EBITDA growth
--Godrej Consumer: Macro, pricing in Indonesia may hit FY26 EBITDA growth
--Godrej Consumer Oct-Dec India underlying volume growth 9% on year
--Godrej Consumer Oct-Dec India EBITDA INR 6.16 bln, up 22% on year
--Godrej Consumer consol operating EBITDA margin 21.6% vs 20.2% year ago
--Godrej Consumer Oct-Dec India home care sales INR 12.26 bln, up 12% on year
--Godrej Consumer Q3 India personal care sales INR 11.15 bln, up 7% on year
--Godrej Consumer: Q3 Indonesia sales dn YoY on competitive pricing pressure
By Anand JC
NEW DELHI – The consolidated top line and bottom line of the fast-moving consumer goods major Godrej Consumer Products Ltd. missed consensus estimates for the December quarter by a narrow margin. The company reported an underlying volume growth of 9% on year for the reporting quarter, driven by a low base and in-market execution.
Its consolidated profit for the December quarter was INR 4.98 billion, largely unchanged year-on-year. Analysts had expected the company to report a profit of INR 5.87 billion on year.
The company incurred a one-time cost of INR 910 million. This includes INR 442 million incurred towards gratuity and leave encashment benefits due to the new labour laws, INR 233 million incurred towards litigation costs paid by its US-based wholly-owned subsidiary, and other costs. Adding back these one-time items, the company's net profit improves to INR 5.89 billion, a touch higher than expectations.
Its consolidated top line for the reporting quarter grew nearly 9% on year to INR 40.99 billion. Its revenue from operations missed consensus estimates of INR 41.18 billion.
"Q3 FY26 has been a quarter of strong, broad-based performance for Godrej Consumer Products Limited, fully aligned with our expectations and strategic priorities," its Managing Director and Chief Executive Officer Sudhir Sitapati said in a press release.
The company's earnings before interest, tax, depreciation, and amortisation for the December quarter grew 22% on year to INR 6.16 bllion. Its consolidated EBITDA margin for the quarter was 21.6%, and its standalone margin was 24.8%. Growth in the latter metric was supported by favourable input costs, cost management, calibrated pricing actions, and improved operating leverage, the company said.
Godrej Consumer has pencilled in a high-single-digit consolidated revenue growth going forward. "Our India business is expected to deliver continued growth performance while holding normative EBITDA margins in the coming quarter," Sitapati said. "With strengthening demand trends, consistent portfolio actions, and a clear strategic roadmap, we are increasingly confident in our ability to deliver sustained, profitable growth and create long-term value for all stakeholders," Sitapati added.
The company's consolidated sales for the December quarter improved 9% in rupee terms and 7% on year in constant currency terms. Godrej Consumer's consolidated revenue from operations in India was INR 25.10 billion, up 11% on year. The company earns over 61% of its overall revenue from its domestic operations. Africa, which is its second-biggest market, reported revenues of INR 9.22 billion, up nearly 20% on year. Revenue from Indonesia fell almost 3% on year to INR 4.94 billion.
In the homecare segment, the company reported a value growth of 12% on year for the December quarter. This growth was driven by market share gains across select products, and the company expects similar performance to continue. Its personal care segment grew 7% on year as the cut in goods and services tax and stable commodity prices lifted the performance of its soap segment. "As guided earlier, margins have returned to normative levels, and we expect this trajectory to sustain through Q4 FY26," the company said.
Overseas, the company said it saw some pricing pressures in Indonesia but spotted early signs of stability. Here, the underlying volume grew 5% on year even as sales fell 3% on year in constant currency and INR terms. "Encouragingly, profitability improved by close to 100 bps over the same period last year. We expect recovery to start meaningfully from FY27 as market conditions normalise," Sitapati said.
Sales in Africa, the US, and West Asia grew 19% on year in the rupee terms and 8% on year in constant currency terms. EBITDA in these markets improved 18% on the back of a strong performance in hair fashion and air fresheners category. "At a consolidated level, while temporary macroeconomic and pricing pressures in Indonesia and Latin America may moderate full-year EBITDA growth, we remain confident in a robust exit trajectory and sustained profitability momentum into FY27," Sitapati said.
SEGMENT REVENUE
Godrej Consumer's revenue from the home care business grew 12% on year to INR 12.26 billion, the company said in an investor presentation. Here, it gained market share in the electrics segment while its non-mosquito portfolio registered a solid growth, the company said. However, the category was impacted by a severe winter during the quarter.
Revenue from the personal care segment grew 7% on year to INR 11.15 billion. In this segment, the company completed the acquisition of Muuchstac on Nov. 10. The operations of this business are currently live, the company said.
EXPENDITURE PROFILE
Godrej Consumer's total expenses for the December quarter grew 6% on year to INR 33.64 billion. Input costs, which form just over 40% of its overall expenses, fell 5% on year to INR 14 billion. Its other expenses fell about a percent on year to INR 6.17 billion while advertising and publicity costs fell 6% to INR 3.41 billion.
For Apr-Dec, the company's consolidated net profit fell 2% on year to INR 14.10 billion while its revenue grew 8% on year to INR 115.86 billion. The company also incurred exceptional costs totalling INR 1.40 billion in the first nine months of the ongoing financial year, far higher than the INR 318 million accounted for in the corresponding period a year ago.
Godrej Consumer's board approved an interim dividend of INR 5 per share for FY26. The record date to ascertain who will receive the dividend is Jan. 30 and the company will pay the dividend on or before Feb. 22.
The FMCG major declared its December quarter results after the market closed for the day. Friday, its shares closed 0.5% lower at INR 1,240.40 on the National Stock Exchange. End
Edited by Akul Nishant Akhoury
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2026. All rights reserved.
To read more please subscribe
Share this Story:
