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Informist, Friday, Jan. 23, 2026

By Pallavi Singhal and Suryash Kumar

NEW DELHI – Godrej Consumer Products Ltd. expects its India business volumes grow at 7-8% per annum in the next two years from the current 6-7%, driven by fast-growing categories such as hair care, laundry liquids, and incense sticks, even as its pet food pilot in Tamil Nadu delivers mixed early results, the company's management said at a post-earnings analyst conference call with analysts. The company earns over 61% of its overall revenue from its domestic operations.

"The India business will gradually inch up because our portfolio has changed quite dramatically in the last three, four years... I do expect sequential gains in volume growth over the next maybe 18 to 24 months," its Managing Director and Chief Executive Officer Sudhir Sitapati said. 

The company's consolidated sales grew 9% on year in rupee terms and 7% in constant currency terms in the December quarter. 

Godrej Consumer said its pet food test launch in Tamil Nadu has shown uneven early traction, reinforcing management's view that the category will require patience. "In Tamil Nadu, results have been mixed. We've had some success in terms of consumer traction and distribution, but we're still not at a position where we can say we've got the mix 100% right," the management said. Godrej Consumer entered the Indian pet food market by launching 'Godrej Ninja' in Tamil Nadu in April 2025, targeting the state's 2–3 million pet-owning households.

The management said pet food is expected to be a slow-burning business for a few years before it takes off. "This is a long game... we are willing to be patient and figure out where we should participate," Sitapati said, noting that another manufacturing capacity has been set up in Nashik.

According to management, growth in household insecticides is increasingly driven by non-mosquito products, electric repellents, and incense sticks. In India, household insecticide volumes have been volatile due to weather disruptions. However, the company sees the underlying trajectory improving as newer formats gain share. "As our insecticide business becomes bigger and bigger, this business is now quite profitable," he said.

According to the management, the insence sticks segment of the household insecticides business is unlikely to see any slowdown. "In incense sticks, we have taken a weighted average price increase of 30% since we launched, and we're seeing no slowdown in our volume growth. So, now, our margins are pretty good, actually," the company management said.

The company expects an early summer onset and an early Holi to further support household insecticide demand in the March quarter and during 2026-27 (Apr-Mar), after unusually cool weather in FY26 weighed on volumes for much of the year. The last three quarters in India have been cooler than normal, negatively impacting both soaps and household insecticides, the management said. "We are expecting that an earlier summer onset will be positive for our business." 

Godrej Consumer said it continues to gain market share across its soaps portfolio, aided by goods and services tax cuts and stable input costs, though soap volumes in the December quarter were below management expectations. "Soap volumes were a little lower than expectations... it took us October and half of November for the overpriced stock to get cleared," the management said, adding that demand improved meaningfully in December. 

GST-related trade adjustments weighed on sales in October, as distributors and retailers focused on liquidating higher-priced inventory following the rate cut. Over the long term, the company expects soap volume growth of 4–6%, with low single-digit pricing growth. The soaps portfolio accounts for about one-third of the India business.

The company said newer formats such as handwash, bodywash and facewash currently contribute less than 10% to the personal wash portfolio, but are growing at 30–40%. "All these put together today may not materially make a difference, but in three to four years, as they become bigger, they can start adding meaningfully to growth," management said, noting that these categories could lift personal wash growth above soaps over time. The company's personal care segment contributes about 54% of domestic revenues.  

The management also reiterated that the worst phase in Indonesia is behind the company. "The peak of competitive intensity is behind us," they said, adding that underlying volume growth of around 5% and margin improvement of about 100 basis points show stabilisation. "We expect recovery to start meaningfully from FY27." The company's revenue from Indonesia in the reporting quarter fell almost 3% year on year to INR 4.94 billion.

Godrej Consumer said it expects similar volume and margin performance in the final quarter of FY26, supported by structural savings in media, supply chain, and product formulation. "We've had very significant savings in media, supply chain, and blend-flex in soaps and detergents," management said, adding that these savings are structural. However, they reiterated that margins in India are likely to remain range-bound at 24–26% on an annual basis, given mix pressures from faster-growing categories.

On growth drivers, the management said categories such as laundry liquids, hair care, and incense sticks have a long runway, with the company expecting "multi-decade growth" as penetration rises. Laundry liquids, which account for just 6–7% of India's laundry market, are growing volumes at around 30%, the management said.

Godrej Consumer Friday reported a net profit of INR 4.98 billion on revenue of INR 40.99 billion. Friday, the company's shares closed 0.5% lower at INR 1,240.40 on the National Stock Exchange. The FMCG major announced its results after the market hours. End

Edited by Saji George Titus

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