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Godrej Profit Flat Amidst Rising Labor Costs
23 Jan
Summary
- Profit remained flat at Rs 497 crore due to increased employee expenses.
- Revenue grew by 8.78 percent, reaching Rs 4,099 crore in Q3 FY26.
- An interim dividend of Rs 5 per share was declared for FY26.
Godrej Consumer Products experienced flat profit growth in the third quarter of fiscal year 2026, with net profit standing at Rs 497.9 crore, a marginal decrease from the previous year. This lack of profit increase was largely attributed to a Rs 44.17 crore impact from the implementation of the New Labour Code, which increased employee benefit expenses.
Despite the profit plateau, the company's revenue from operations showed robust growth, rising by 8.78 percent year-on-year to Rs 4,099 crore. Management expressed confidence in achieving high single-digit revenue growth for the full fiscal year.
Additionally, Godrej Consumer Products declared an interim dividend of Rs 5 per equity share for FY26, with January 30 set as the record date. The company also incurred Rs 23.31 crore in litigation costs during the quarter.
