Reckitt’s base effect GST boost in India to unwind in Q4, says CEO

New Delhi: British consumer healthcare company Reckitt’s India operations reported “strong growth momentum” in the July-September quarter, compared with a year earlier when stock depletions following GST rate revisions hit performance, chief executive Kris Licht said. The base-effect benefit is expected to dissipate now, he said.

“The prior-year period was impacted by GST-related stock depletion, creating a favourable lap which is expected to unwind in Q4,” Licht said, at the company’s post-earnings investor call on Tuesday.

Last year in September, India slashed goods and services tax on most packaged consumer goods, including soaps, snacks, noodles and toothpaste, to 5% from 12% or 18%. While the GST reduction led to lower prices for consumers, the new tax regime caused significant trade and operational disruptions as companies had to replace existing stocks with packs with the lower price tags, resulting in temporary sales moderation.


Reckitt said emerging markets delivered 8% like-for-like net revenue growth in the third quarter ended September, and that growth was balanced between volume, price and mix, with India growing in double digits. As a practice, the company doesn’t mention standalone India numbers. It called out double-digit growth for its germ protection brand Dettol, Durex condoms and disinfectant cleaner Harpic in India, along with Brazil and South Africa.

“AI-enabled sales transformation is continuing to enhance execution in the (India) market,” Licht said.

“We are leveraging best practices in terms of sales execution, both in offline trade and in online trade,” he said.

In emerging markets, Reckitt is accelerating growth across categories and into new markets to complement the strength of businesses in China and India. “On emerging markets, we know that we have a great opportunity to broaden our performance, and really out-perform in India and China,” he added.

For the £14.2 billion British consumer and healthcare company, India remains a market of key strategic importance, with its large consumer base as well as widely underpenetrated categories such as floor cleaners, hair removers and air fresheners that give significant growth headroom. In its 2025 annual report, Reckitt said emerging markets collectively represented the largest single area in its power brand portfolio, led by the high-growth markets of India and China.