Godrej Consumer Products Limited reported a mixed performance for the second quarter of fiscal year 2026, with consolidated net profit declining 6.5% year-on-year (YoY). However, the company mentioned a major acquisition in the men’s grooming brand, “Muuchstac.”
The consolidated net profit of GCPL had fallen to ₹459.3 crore for the quarter ending September 30, 2025, from ₹491.3 crore in the same period last year. However, the consolidated revenue from operations increased by 4.3% to ₹3,825 crore from ₹3,666 crore a year ago. The company also announced an interim dividend of ₹5 per equity share for the fiscal year 2025-26.
Performance drivers and headwinds
The company’s performance has been affected by short-term challenges, directly opposite to the initial enthusiasm for a seamless transition. According to management, pressure on profitability was mainly due to GST (Goods and Services Tax) transition disruptions in India.
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As per Godrej Consumer Products Limited’s press release, Sudhir Sitapati, Managing Director and CEO, GCPL, commented, “Q2 FY26 has been a resilient quarter for Godrej Consumer Products Limited (GCPL), especially given the backdrop of the GST transition in India and continued macroeconomic challenges in Indonesia. Despite these headwinds, our India business, excluding soaps, has delivered double-digit underlying volume growth, reflecting the strength of our core portfolio and execution.”
The company's India business recorded a modest 4% sales growth, backed by 3% volume growth. Internationally, there was an uneven performance. Strong growth from the Africa, USA & Middle East business saw a 25% increase in rupee terms, offset by macro-economic weakness in the key market of Indonesia, where sales declined 7% on a constant currency basis, as mentioned in GCPL’s press release reports.
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Major updates: 'Muuchstac' acquisition
The most important update in the quarter was to strengthen its digital-first and personal care portfolio. GCPL announced signing a definitive agreement to acquire the FMCG business under the brand “Muuchstac” via a slump sale from Trilogy Solutions.
According to GCPL’s press release report, the Muuchstac brand is currently among the top two players in online men’s facewash and the top three overall. Over the twelve months ending September 2025, Muuchstac's business recorded revenues of approximately ₹80 crores and EBITDA (adjusted for one-offs) of around ₹30 crores, reflecting its strong operating discipline and profitability.
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