Godrej Consumer Q3 FY26 Profit Flat at ₹497 Cr as Higher Employee Costs Offset Revenue Growth
Godrej Consumer Products reported muted earnings performance for the third quarter of FY26, with net profit remaining largely flat as rising employee-related expenses offset healthy revenue growth. The FMCG major posted a consolidated net profit of ₹497.9 crore in Q3 FY26, marginally lower than ₹498.31 crore recorded in the same quarter last year — a year-on-year decline of 0.08 per cent.
Revenue Growth Despite Margin Pressure
Despite pressure on profitability, Godrej Consumer delivered strong topline growth. Revenue from operations rose 8.78 per cent year on year to ₹4,099 crore in Q3 FY26, compared to ₹3,768 crore in Q3 FY25. The growth was driven by steady performance in the India business and continued momentum in its international operations.
Commenting on the outlook, Sudhir Sitapati, Managing Director and CEO, said the company remains confident of achieving high single-digit consolidated revenue growth for the full year. He added that the India business is expected to sustain growth while maintaining normative EBITDA margins, while GAUM continues to deliver double-digit revenue and profit growth.
Rising Employee Costs and Litigation Impact
Profitability was impacted by a sharp rise in employee benefit expenses following the implementation of the New Labour Code. Employee costs increased to ₹328 crore in Q3 FY26 from ₹296 crore a year earlier. The company said the labour code led to an incremental impact of ₹44.17 crore, primarily due to changes in wage definitions affecting gratuity and leave encashment provisions.
Additionally, Godrej Consumer incurred litigation costs of ₹23.31 crore during the quarter related to product litigation, including a class action lawsuit concerning hair relaxer products.
Dividend Announcement
The company declared an interim dividend of ₹5 per equity share for FY26. January 30 has been fixed as the record date, with payment scheduled on or before February 22, 2026.
Our Thoughts
Godrej Consumer’s Q3 performance reflects a classic FMCG trade-off — strong revenue growth weighed down by structural cost pressures. While labour code implementation and litigation expenses impacted margins in the short term, the company’s steady topline growth and confident outlook suggest underlying business resilience. Execution over the next few quarters will be key to restoring margin momentum.