GCPL Q2 profit up 14%, margins contract

8% year-to-year to Rs 820 crore in the said quarter against street estimates of Rs 835 crore. Ebitda margins contracted 120 basis points year-on-year to 18.6% from 19.8% reported last year. It was below street estimates of 18.8% for the quarter. The company’s home care segment, which comprises products like air fresheners, household insecticides and fabric care, posted sales of Rs 1,329 crore, up 19% year-on-year in Q2.

The growth came as the company said it gained market share in household insecticides. “Our electrics portfolio delivered sequentially improving performance, supported by the new “6-minute” campaign, while incense sticks continued to scale strongly,” Aasif Malbari, MD and CEO, GCPL, said in an earnings’ call on Thursday. This is the first earnings report under Malbari, earlier CFO, who replaced Sudhir Sitapati as MD & CEO in August.

GCPL’s personal care portfolio, best known for soaps such as Cinthol and Godrej No.1, posted sales of Rs 1,303 crore, registering an 8% year-on-year growth. “Soaps remained stable despite significant price increases and grammage reductions, although with a favorable comparator. Our premium liquid formats continue to do well,” Malbari said. “Perfumes and deodorants delivered double-digit growth, supported by healthy underlying volume growth in deodorants and continued momentum in perfumes," he said.

In Indonesia, GCPL’s sales expanded 20%, with an underlying volume growth of 8%. Ebitda grew 12%, despite the rise in LPG prices. The company said it benefited from the El Nino. tailwind as it led to increased sales in the mosquito infestation products. Malbari added that GCPL continues to hold its FY27 guidance: high-single-digit underlying volume growth in the standalone business, and double-digit revenue and Ebitda growth at the consolidated level.

“With revenue running ahead of plan through the first half, we remain on track to deliver, with the confidence to exceed it in select areas,” he said.