Godrej Consumer expects double-digit growth in Q3 on easing GST 2.0 disruptions

Godrej Consumer Products says it's confident of improvement in consumption over coming quarters, supported by falling inflation and lower GST rates.

Godrej Consumer Products Ltd. has guided for double-digit growth in October-December as disruptions brought on by GST reforms eased.

Godrej Consumer Products retails FMCG goods, which have seen a reduction in GST rate to 5% as part of a rationalisation move in 2025. (Handout)

“We remain confident of a gradual improvement in consumption over coming quarters, supported by falling inflation and improving affordability following lower GST rates,” the company said in a quarterly update on Tuesday.

The second-quarter earnings for several FMCG firms were hurt by temporary sales disruptions as consumers deferred purchases after PM Modi announced GST rate cuts on Independence Day. The new rates came into effect on 22 September 2025. That resulted in higher demand during the third quarter.

The update follows that of smaller rival Dabur Ltd., which expects consolidated revenue to grow in the mid-single digits versus 3% a year earlier. Godrej, known for its Cinthol brand of soaps and Goodknight mosquito repellent, posted a 4% rise in revenue in July-September.

On Tuesday, Godrej Consumer shares rose 0.79% to ₹1,253.65 apiece on the BSE even as the benchmark Sensex ended the day 0.44% lower at 85,063.34 points.