Godrej Shopper shares in focus as firm sees regular Q2 development amid GST tailwinds

Shares of Godrej Shopper Merchandise are more likely to be in give attention to Wednesday after the corporate introduced that it expects consolidated income development within the mid-single digits for the second quarter of fiscal yr 2026 (FY26), pushed by tax cuts on key product traces and a resilient efficiency throughout geographies.

Godrej Shopper Merchandise Ltd (GCPL), a part of the diversified Godrej Group and proprietor of manufacturers resembling Godrej No.1, Cinthol, Godrej Professional, and Ezee, stated practically one-third of its product portfolio is now taxed at 5%, down from 18%, following the most recent Items and Companies Tax (GST) reforms. The affected merchandise embrace bathroom soaps, talcum powders, shampoos, and shaving lotions.

The corporate stated the tax profit has been handed on to shoppers from September 22, 2025, which is predicted to “assist volume-led development and long-term worth creation.”

Domestically, GCPL’s standalone enterprise is projected to see mid-single-digit worth development, with underlying quantity development (UVG) in low-single digits. Inside classes, the house care portfolio is exhibiting sturdy momentum, posting high-single-digit worth development, whereas private care is predicted to say no within the low-single digits, primarily as a consequence of soaps.

Blended traits in abroad markets

Internationally, efficiency stays uneven. The Indonesia enterprise continues to face intense pricing strain, leading to low-single-digit worth decline however barely constructive UVG. In distinction, the GAUM markets, Africa, USA, and the Center East, are set to ship double-digit worth and quantity development for the third consecutive quarter.

GCPL, which operates throughout India, Africa, Southeast Asia, and the Center East, stated it stays a number one participant in private care, dwelling care, and worldwide client merchandise, with a presence throughout premium and mass-market segments.

Brief-term margin strain probably

The corporate cautioned that the GST transition might quickly affect EBITDA as a consequence of short-term commerce disruption as channels clear previous stock with pre-GST minimize labels. Nevertheless, it stays optimistic about its efficiency within the second half of the monetary yr.

Shares of Godrej Shopper Merchandise ended marginally greater at Rs 1,152.45 on the BSE on Tuesday.

Additionally learn | 15 shares to buy this Diwali; SBI Securities eyes as much as 25% upside. Examine listing

(Disclaimer: Suggestions, recommendations, views and opinions given by the consultants are their very own. These don’t symbolize the views of the Financial Instances)