GCPL sees growth revive in Q3 with home care business doing the heavy-lifting

Godrej Consumer Products Ltd (GCPL) signals a gradual consumption recovery over the next few quarters, with improving demand conditions in the December quarter (Q3FY26). Easing inflation and a better affordability after the goods and services tax rate rationalization would aid revival.In its Q3FY26 pre-quarterly update, GCPL stated that consolidated revenue (in rupee terms) would be close to double digits, driven by double-digit volume growth in the India business.

Also, the India business Ebitda margin is expected to return to normalized levels, which have been in the 24-26% range, helped by favourable input costs, calibrated pricing, and operating leverage. Consolidated Ebitda growth will also be in double digits.

Ebitda is short for earnings before interest, taxes, depreciation, and amortization.These are better than initial estimates by some brokerages. “We believe it (revenue) would have grown by 9.5% year-on-year, better than our earlier estimate of 6.7% on-year,” said Nomura Global Markets Research report dated 6 January.

Nomura is now pencilling in an Ebitda growth of around 12.8% on-year, above its expectation of a 9.5% on-year rise.The home-care segment, which accounted for 27% of its FY25 consolidated sales, is at the driver’s seat and is expected to deliver double-digit value growth in Q3FY26. Notably, the pickup has come despite an unfavourable winter, which would typically weigh on household insecticide sales.Personal care (soaps, hair colours, deodrants), contributing 32% of FY25 consolidated sales, is expected to post mid-single-digit growth led by a recovery in soaps after nearly 10 quarters of flat or negative performance.