GCPL ad spends dip 5% YoY to Rs 313.83 crore in Q1 FY2026

New Delhi: The FMCG major Godrej Consumer Products reported a 5% dip in advertising and publicity expenses to Rs 313.83 crore in Q1 FY2026 from Rs 330.82 crore in the corresponding quarter of the previous year.

On a quarterly basis, the company’s ad spends marginally increased by Rs 2.86 crore from Rs 310.97 crore in Q4 FY2025.

Godrej Consumer Products reported a marginal decline in consolidated profit after tax to Rs 452.45 crore in the first quarter ended June 30, 2025, impacted by higher raw material costs and challenges in the Indonesian business.

The company had posted a consolidated profit after tax of Rs 450.69 crore in the corresponding period last fiscal, Godrej Consumer Products (GCPL) said in a regulatory filing.

Consolidated revenue from operations in the first quarter stood at Rs 3,661.86 crore as against Rs 3,331.58 crore in the year-ago period, it added.

Total expenses were higher at Rs 3,113.14 crore in the quarter as compared to Rs 2,744.36 crore in the same period last fiscal year. Cost of raw materials, including packing material consumed, was higher at Rs 1,480.31 crore as against Rs 1,289.68 crore in the same period a year ago, the company said.

For the quarter ended June 30, 2025, the exceptional item in the consolidated financial results includes an amount of Rs 19.54 crore related to litigation settlement in Indonesia, it added.

The board has declared an interim dividend at the rate of Rs 5 per share of the face value of Re 1 each, GCPL said.

GCPL Managing Director and CEO, Sudhir Sitapati said Q1FY26 has been a good quarter, in particular on a standalone basis, excluding soaps, delivering an underlying volume growth around teens, led by robust, broad-based performance.

India has had a good quarter, delivering revenue growth of 8% and volume growth of 5%, he said, adding soaps volume growth was "impacted by volume-price rebalancing."

"Our international business has been impacted due to macro headwinds and competitive pricing pressures in Indonesia, which was compensated by strong performance in Africa," he noted.

Sitapati further said, "Our Indonesia business has been impacted by macro headwinds and competitive pricing pressures. However, we expect this to be transitory in nature, with the situation likely to improve in a few months."

In India, sales grew by 8% to Rs 2,307 crore, GCPL said, adding the home care segment grew by 16% while personal care was up 1%.

The company further said Indonesia faced a difficult quarter. Macro headwinds and increased competitive intensity led to flat underlying volume growth (UVG). Sales de-grew by 4% in constant currency and Indian rupee terms.

On the other hand, in Africa, the US, and the Middle East, organic sales grew 30% in Indian rupee terms.

On the outlook, Sitapati said,"...we expect performance to improve sequentially in FY26, with the second half performance expected to be better than the first half. Standalone EBITDA margin in H1FY26 is likely to be below our normative range but is expected to improve in the second half." While palm oil prices started moderating towards the end of June, the benefits of this moderation will only be realised in H2FY26, he said.

"We believe that we are on track to deliver mid-high-single-digit UVG for our standalone business, high-single-digit consolidated INR revenue growth and double-digit consolidated EBITDA growth for the full year," Sitapati said.