Godrej Consumer Products' Q2 FY 2025-26 Quarterly Results

Result Summary

• Godrej Consumer Products Ltd reported a 3.8% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 3.6%.
• Its expenses for the quarter were up by 3.9% QoQ and 6.4% YoY.
• The net profit increased 1.5% QoQ and decreased 6.5% YoY.
• The earnings per share (EPS) of Godrej Consumer Products Ltd stood at 4.49 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results

Company Overview

Godrej Consumer Products Ltd (GCPL) operates in the fast-moving consumer goods (FMCG) sector, primarily focusing on personal care, hair care, home care, and household insecticides. The company is part of the larger Godrej Group, a major conglomerate in India. Over the years, GCPL has established a significant presence in international markets, including Asia, Africa, and Latin America, which contributes to its diverse product portfolio. The company is known for its strong brand presence with products like Goodknight, Cinthol, Godrej No.1, and HIT. Recent developments in the company may include strategic acquisitions or initiatives to expand its digital footprint, although specific details are not provided here.

Revenue

In Q2FY26, Godrej Consumer Products Ltd reported a total income of ₹3887.94 crores, reflecting a quarter-over-quarter (QoQ) growth of 3.8% from ₹3746.38 crores in Q1FY26. This also marks a year-over-year (YoY) increase of 3.6% from ₹3752.32 crores in Q2FY25. The incremental growth in revenue over these periods indicates a positive trend in the company's income generation capabilities. Such growth may be attributed to increased sales volumes, pricing strategies, or market expansion, although specific drivers are not detailed in the given data.

Profitability

Profitability for Godrej Consumer Products Ltd in Q2FY26 shows a Profit Before Tax (PBT) of ₹625.01 crores, which is an increase of 1.8% QoQ from ₹613.70 crores in Q1FY26. However, it represents a decline of 11.6% YoY from ₹706.66 crores in Q2FY25. The company’s Profit After Tax (PAT) for Q2FY26 stood at ₹459.34 crores, up by 1.5% QoQ from ₹452.45 crores in Q1FY26, but down by 6.5% YoY from ₹491.31 crores in Q2FY25. The Earnings Per Share (EPS) aligns with the PAT trend, showing a marginal increase QoQ, but a decline YoY. This suggests that while QoQ profitability has slightly improved, the YoY comparison reflects a different trend.

Operating Metrics

The total expenses for GCPL in Q2FY26 were ₹3233.27 crores, up by 3.9% QoQ from ₹3113.14 crores in Q1FY26, and by 6.4% YoY from ₹3039.88 crores in Q2FY25. The increase in expenses over these periods might be due to higher operational costs, increased marketing expenses, or other factors. The tax expense for the quarter was ₹165.67 crores, reflecting a QoQ increase of 2.7% from ₹161.25 crores in the previous quarter, but a YoY decrease of 23.1% from ₹215.35 crores in Q2FY25. The changes in tax expense could be influenced by adjustments in tax rates, tax planning strategies, or fluctuations in taxable income. The operating metrics highlight a mixed picture of moderate cost increases and tax dynamics affecting net earnings.