Q3 sales recovery, easing costs to drive gains for Godrej Consumer Products

Emkay Research points out that GST cuts have boosted consumer sentiment, and growth benefits are likely to be visible going ahead

The stock of Godrej Consumer Products (GCPL) is trading at its monthly highs, rising 2.5 per cent over the past month while its peer index is down 2 per cent over the same period.

 

The monthly gain reverses its underperformance over the past three months.

 

There are expectations that the third quarter (Q3FY26) will see an improvement in its operating performance which was sub-par over the last couple of quarters due to raw material pressures and Indonesia performance.

 

While the Indonesian operations will take time to recover, brokerages expect the India revenues and margins to recover from the December quarter.