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Colgate-Palmolive Q2 Profit Plunges 17% Amid GST Disruption Impact

Colgate-Palmolive India reported disappointing quarterly results with significant drops in both profit and revenue. The company's net profit fell by 17% compared to the same period last year. Management attributed the poor performance to disruptions caused by the recent GST rate revision affecting their distribution network. Despite these challenges, the company maintained its dividend payout and emphasized commitment to long-term strategic goals.

Key Points: Colgate-Palmolive India Q2 Profit Falls 17 Percent

  • Net profit fell to Rs 327.50 crore from Rs 395.05 crore year-on-year
  • Revenue declined 6.15% to Rs 1,519.50 crore in Q2 FY26
  • CEO cited GST rate revision disruptions affecting distributors and retailers
  • Company announced interim dividend of Rs 24 per share totaling Rs 652.8 crore
2 min read

Colgate-Palmolive India's Q2 profit falls 17 pc, revenue slips over 6 pc

Colgate-Palmolive India reports 17% profit drop and 6% revenue decline in Q2 FY26, citing GST rate revision disruptions while maintaining dividend payout.

"Despite the short-term challenges, we remain focused on our long-term strategic goals - Prabha Narasimhan, MD & CEO"

Mumbai, Oct 23

Colgate-Palmolive (India) Limited on Thursday reported a 17 per cent drop in its net profit for the second quarter of the current financial year (Q2 FY26).

The company's profit stood at Rs 327.50 crore for the quarter ended September 2025, compared to Rs 395.05 crore in the same period last financial year (Q2 FY25), according to its stock exchange filing.

Revenue also fell 6.15 per cent year-on-year (YoY) to Rs 1,519.50 crore, down from Rs 1,619.11 crore in the previous fiscal.

Operating income or EBITDA declined 6 per cent to Rs 465.43 crore, while the EBITDA margin was almost unchanged at 30.6 per cent, compared to 30.7 per cent last financial year.

Prabha Narasimhan, Managing Director and CEO of Colgate-Palmolive India, said the quarter's performance reflected a temporary impact from disruptions among distributors and retailers due to the GST rate revision.

She added that the company has worked with its partners to ensure consumers benefit from the lower prices that took effect after the tax change.

"Despite the short-term challenges, we remain focused on our long-term strategic goals and will continue to invest in our brands," Narasimhan said.

Alongside the results, the company announced a first interim dividend of Rs 24 per share for the financial year 2025-26, amounting to a total payout of Rs 652.8 crore.

The record date for the dividend has been set as November 3, and the payment will be made on or before November 19, according to the company's exchange filing.

Colgate-Palmolive (India)'s quarterly results were released after market hours. On Thursday, its shares closed 1.16 per cent higher at Rs 2,286.90 on the NSE.

However, the stock has fallen 31.35 per cent over the past year and 14.69 per cent so far in 2025.

- IANS

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Reader Comments

P
Priya S
But they're still paying dividend of Rs 24 per share! That's quite generous despite the profit drop. Shows they care about shareholders. Good for long-term investors who believe in the brand.
A
Arjun K
GST revision is just an excuse. The real issue is that Colgate hasn't innovated enough. Same old products while competitors are launching herbal, ayurvedic variants that Indian consumers prefer these days.
S
Sarah B
As someone who works in FMCG distribution, I can confirm the GST changes did cause temporary disruptions. Many retailers were confused about pricing. Hopefully next quarter will be better once things stabilize.
M
Meera T
My family has been using Colgate for generations, but recently switched to natural toothpaste. The younger generation wants chemical-free products. Colgate needs to adapt to changing consumer preferences in India.
V
Vikram M
The stock falling 31% in one year is concerning. But the dividend announcement might help regain some investor confidence. Let's see how the market reacts tomorrow.

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