Colgate-Palmolive India Q2 FY26 Net Profit Dips 18.9% to ₹327.51 Crore; Interim Dividend of ₹24 Declared

Mumbai, 23 October 2025: Colgate-Palmolive (India) Limited (NSE: COLPAL, BSE: 500830) reported a net profit of ₹327.51 crore for Q2 FY26, down 18.9% year-on-year (YoY) from ₹395.05 crore in Q2 FY25. The decline comes amid trade disruptions following the Goods and Services Tax (GST) revision, which temporarily slowed revenue movement across distribution channels.

Revenue Moderates to ₹1,50,724 Lakh, Sequential Growth of 6.1% Highlights Operational Resilience

The company’s revenue from operations stood at ₹1,50,724 lakh, lower by 6.3% YoY from ₹1,60,921 lakh in Q2 FY25 but up 6.1% quarter-on-quarter (QoQ) from ₹1,42,064 lakh in Q1 FY26. The profit before tax was ₹44,228 lakh, down 16.6% YoY yet marginally higher by 2.4% QoQ, reflecting the company’s continued cost-control measures and operational efficiency.

Colgate’s other income fell sharply by 80.2% YoY to ₹1,503 lakh, primarily due to lower treasury gains compared with ₹7,598 lakh in the same quarter last year. Despite revenue headwinds, total expenses remained contained at ₹1,09,225 lakh, a YoY reduction of 6.2%, underscoring disciplined spending under its Funding the Growth initiative.

Trade Disruptions Due to GST Rate Cut Temporarily Affect Topline

Colgate highlighted that the GST rate on oral care products was revised from 18% to 5%, enhancing long-term affordability but creating temporary disruptions in trade channel sales. Net sales for the quarter fell 6.3%, while H1 FY26 sales were down 5.4% YoY.

Premium offerings, particularly Colgate Visible White Purple, maintained momentum, demonstrating resilience in the high-end segment. In personal care, the company launched Palmolive “Moments” body wash and extended marketing campaigns for Colgate Strong Teeth, boosting brand visibility during a challenging quarter.

Interim Dividend of ₹24 per Share Signals Continued Shareholder Returns

The Board approved a first interim dividend of ₹24 per share (face value ₹1 each) for FY26, amounting to ₹65,277 lakh (₹652.8 crore). The record date is set for 3 November 2025, with payment on or after 19 November 2025.

Balance Sheet Strength Evident with Total Assets at ₹3,17,765 Lakh

The company’s total assets increased to ₹3,17,765 lakh as of 30 September 2025, compared with ₹3,01,855 lakh on 31 March 2025. Total equity grew to ₹1,66,447 lakh, while cash and cash equivalents surged to ₹1,30,572 lakh, nearly doubling from ₹66,810 lakh in the previous fiscal year, reflecting strong liquidity management.

Colgate-Palmolive India Stock Up 1.74% to ₹2,300; Intraday High at ₹2,310

Colgate-Palmolive (India) Ltd’s share price rose by ₹39.40 or 1.74%, trading at ₹2,300 as of 3:30 pm IST on 23 October 2025. The stock opened at ₹2,257, hit a high of ₹2,310 and a low of ₹2,245, with a market capitalisation of ₹62.23K crore and a P/E ratio of 44.89.

Management Commentary Highlights Focus on Recovery and Margin Resilience

Prabha Narasimhan, Managing Director & CEO, stated: “During the quarter, GST rates on our oral care portfolio were reduced from 18% to 5%. We welcome this step to boost consumer affordability. While trade channels experienced temporary disruptions, we expect a gradual recovery in the second half. Our margin profile remains robust, supported by strong execution and continued brand investment.”

Colgate-Palmolive India demonstrated operational resilience amid regulatory-induced trade disruptions, with sequential revenue growth and strengthened liquidity. The interim dividend and continued focus on premium and personal care segments highlight the company’s commitment to brand development, efficient cost management, and financial stability in a transitional regulatory environment.

REF: https://nsearchives.nseindia.com/corporate/COLPALS_23102025153352_OutcomeCPIL2025.pdf

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