Q4 volume gains, margins likely to sustain rally in Godrej Consumer

In the near term, GCPL's India profitability may continue to face pressure given modest volume growth and higher input cost

Godrej Consumer Products (GCPL) had a disappointing third quarter (Q3FY25) with flat volumes (after 7 per cent growth H1FY25). Price hikes will be required to maintain margins to offset the cost of palm oil inflation. However, some analysts see Q3 as an exception with strong volume growth expected to resume and it may be the fastest growing FMCG player in FY26.

 

In Q3, double-digit growth in laundry, air-fresheners, and sexual wellness were offset by declines in soaps and household insecticides. Further soap price hikes are expected in Q4 onwards. Incense sticks gained market share (high single digits) while liquid vaporisers