GCPL Q2 profit down 6.5% at Rs 459.34 cr; to acquire Muuchstac's FMCG biz

New Delhi: Godrej Consumer Products Ltd (GCPL) on Friday reported a 6.5 per cent decline in consolidated profit after tax to Rs 459.34 crore in the September quarter impacted by challenges in Indonesia and GST transition in India.

The company, which had posted consolidated profit after tax (PAT) of Rs 491.31 crore in the corresponding quarter last fiscal year, said it will acquire the FMCG business under the 'Muuchstac' brand via slump sale from Trilogy Solutions Pvt Ltd for a cash consideration of nearly Rs 450 crore.

Consolidated total revenue from operations in the second quarter stood at Rs 3,825.09 crore as against Rs 3,666.33 crore in the year-ago period, GCPL said in a regulatory filing.

Total expenses in the quarter under review stood at Rs 3,233.27 crore as against Rs 3,039.88 crore in the same period a year ago, the company said.

GCPL Managing Director and CEO Sudhir Sitapati described Q2 FY26 as a "resilient quarter" for the company "especially given the backdrop of the GST transition in India and continued macroeconomic challenges in Indonesia".

"In India, sales grew 4 per cent and volumes by 3 per cent. The recent GST rate reduction is a welcome structural reform that will strengthen long-term consumer demand. However, this transition led to short-term trade disruptions as the channel adjusted to new pricing and cleared old inventory, particularly impacting soaps and hair colour," he said.

He further said, "Our international portfolio faced macro and competitive pressures in Indonesia, which were offset by robust performance in Africa." Indonesia underlying volume growth grew by low mid-single-digit, sales de-grew by 7 per cent in constant currency and rupee terms, year-on-year, the company said.

Sitapati said the company's Indonesia business continues to face macro and pricing pressures and "revenue growth remained negative due to ongoing pricing challenges at -7 per cent".

He further said, "We faced unanticipated macroeconomic headwinds in both Indonesia and Latin America. Given the temporary pressures in these international markets, consolidated EBITDA growth may be marginally lower." On the outlook, he said, "We expect our performance to strengthen sequentially through FY26, with the second half delivering a stronger trajectory than the first." GCPL also announced that it has signed definitive agreement to acquire the FMCG business under the 'Muuchstac' brand via slump sale from Trilogy Solutions Pvt Ltd.

As per a regulatory filing by the company, the transaction will be carried out through cash payment with the first tranche of Rs 289 crore to be paid on the date of signing and the second tranche of approximately Rs 160 crore after 12 months.

This acquisition marks a strategic step in GCPL's journey to strengthen its personal care portfolio and expand its footprint in high-growth, high-margin categories, it added.

"The brand's strong resonance among younger consumers, high profitability, and proven digital execution model make it a powerful addition to our personal care portfolio. This acquisition enhances our participation in the fast-growing men's grooming segment and supports our vision of building a future-ready, innovation-led GCPL," Sitapati noted.

GCPL also said its board has declared an interim dividend of Rs 5 per share of face value of Re 1 each for the 2025-26 financial year.