Godrej Consumer Products Ltd (GCPL) said demand conditions in India strengthened progressively during the third quarter ended December 2025 and expressed confidence of a gradual improvement in consumption over the coming quarters.
In its quarterly business update, the FMCG major said easing inflation and improving affordability, aided by lower GST rates, are expected to support consumption growth. The company added that its standalone business is well-positioned to deliver double-digit revenue growth in the third quarter of FY26.
“Demand conditions in India strengthened progressively during the quarter. We remain confident of a gradual improvement in consumption over the coming quarters, supported by falling inflation and improving affordability following lower GST rates,” GCPL said in a regulatory filing.
The company said its standalone performance is expected to be underpinned by close to double-digit underlying volume growth, albeit on a favourable base. The home care segment continues to see robust momentum and is expected to deliver double-digit value growth, driven by sustained consumer demand and effective in-market execution.
GCPL said the personal care segment is likely to report mid-single-digit value growth, led by a strong recovery in the soaps category. The company attributed this improvement to better category fundamentals as well as sharper execution, which has helped strengthen its competitive performance.
On profitability, GCPL said standalone EBITDA margins are expected to return to the normative range, supported by favourable input costs, disciplined cost management, calibrated pricing actions and improved operating leverage.
In international markets, the company noted that competitive pricing pressures in Indonesia persisted during the third quarter. However, it said early signs of stabilisation are visible, with an improvement in both revenue and profitability expected from FY27 onwards.
The GAUM cluster—comprising Africa, the US and the Middle East—continued to deliver strong and consistent performance on both revenue and profit, GCPL said, adding that the business remains on track to achieve double-digit growth in FY26 in line with its guidance.
At a consolidated level, the company expects close to double-digit revenue growth in rupee terms and double-digit EBITDA growth, reflecting improving trends across its international businesses and the strength of its category-led growth strategy.