Colgate-Palmolive (India) Ltd is engaged in the manufacture and sale of oral and personal care products, including toothpaste, tooth powder, toothbrushes, and mouthwash. It remains India’s market leader in oral care, catering to millions through brands like Colgate Strong Teeth, Visible White, and Palmolive.
Q2 FY26 Earnings Summary
- Consolidated revenue stood at ₹1,520 crore, down 6.11% year on year from ₹1,619 crore.
- Total expenses declined 6.27% to ₹1,092 crore from ₹1,165 crore.
- Consolidated net profit dropped 16.96% to ₹328 crore from ₹395 crore in the same quarter last year.
- Earnings Per Share (EPS) was ₹12.04, down 17.08% from ₹14.52.
- EBITDA decreased 6.4% year on year, reflecting softer demand and margin compression.
Operational and Business Highlights
The company’s performance was affected by temporary supply chain disruption following the reduction in Goods and Services Tax (GST) on oral care products from 18% to 5%. This caused short-term inventory adjustments among distributors and retailers.
Revenue declined due to an estimated 8.5% fall in toothpaste volumes, though higher contributions came from premium offerings such as Colgate Visible White Purple and the “Cavity-Proof” campaign under Colgate Strong Teeth.
Colgate introduced new body wash products under its Moments range, expanding its personal care portfolio beyond oral hygiene.
The company declared an interim dividend of ₹24 per share, with a record date of November 3, and payment scheduled for November 19.
Financial Position and Outlook
Colgate maintains a debt-free balance sheet with strong cash reserves but faces intensified competition from FMCG rivals HUL and Dabur, which reported stronger growth in oral care.
Analysts expect a gradual recovery in H2 FY26 as market re-stocking and stable GST pricing ease distribution challenges.
Management remains focused on premiumization, product innovation, and expanding into adjacencies such as personal hygiene to offset category stagnation and support long-term growth.
Colgate-Palmolive (India) Ltd continues to lead India’s oral care market but faces near-term headwinds from GST reforms and rising competition. However, its innovation pipeline and brand strength position it well for a gradual recovery through FY26 and beyond.
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