(Reuters) -Godrej Consumer Products said on Tuesday core profit in its consolidated business is likely to decline in the second quarter on account of a temporary sales disruption after the government’s sweeping goods and services tax (GST) cuts.
The company, known for its ‘Cinthol’ brand of soaps, added in the second-quarter business update that it expects mid-single-digit consolidated revenue growth for the three months ended September 30.
Indian consumer majors, including Hindustan Unilever and Dabur, flagged short-term sales disruptions in September, ahead of the government’s GST cuts, as retailers rushed to liquidate existing higher-priced inventory.
GST cuts went into effect on September 22.
Godrej said the rush delayed the flow of new orders and temporarily deferred consumer purchases, “impacting both growth and profitability.”
However, the company expects the tax cuts to be beneficial for demand in the long run, with nearly one-third of its portfolio benefitting from the reduced levy of 5%, compared with the earlier 18%.
Godrej Consumer added that it expects financial performance to improve from the second half of fiscal 2026.
(Reporting by Ananta Agarwal in Bengaluru; Editing by Shreya Biswas)
