New Delhi, Jan. 28 -- Godrej Consumer Products Ltd's (GCPL) third quarter of FY25 was gloomy, and it did not come as a surprise. The company had already informed in a pre-quarter update in early December that Q3 revenue and profitability would be weak as its India business was facing challenges in soaps and household insecticides. These segments contribute significantly to the overall mix.

On a high base, GCPL's Q3 consolidated Ebitda margin contracted as much as 291 basis points year-on-year to 20%. As the chart alongside shows, this is the first drop in the measure in many quarters. Gross margin contracted 175 bps to 54%. That, along with high other expenses and staff costs weighed on Ebitda margin. Thus, Ebitda fell by 10% to Rs.756 c...