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Colgate-Palmolive (India) Ltd’s September quarter performance was largely in line with Street estimates, as the oral care maker navigated through GST-related disruptions and a high base from last year.
The company reported a 17.1% year-on-year decline in net profit to ₹327.5 crore, down from ₹395.1 crore, nearly in line with the CNBC-TV18 poll estimate of ₹328 crore. Excluding the one-time impact of interest on a tax refund in the base year, profit fell by 7.2%.
Revenue for the quarter came in at ₹1,519.5 crore, down 6.2% from ₹1,619 crore a year ago and slightly below the estimated ₹1,538 crore.
EBITDA stood at ₹464.5 crore, a 6.6% decline from ₹497.4 crore in the same quarter last year, while operating margins were steady at 30.6%.
Sequentially, however, net sales rose 6.1% from the June quarter, signalling early signs of recovery.
The company said its performance was impacted by temporary disruptions at distributors and retailers following the reduction in GST rates on oral care products from 18% to 5%, effective during the quarter.
“While we continued to navigate a difficult operating environment, our performance reflects the transitory disruption caused by GST rate revision. We expect a gradual recovery in the second half,” Prabha Narasimhan, Managing Director & CEO, Colgate-Palmolive said.
Colgate added that its margin profile remained resilient, supported by its ‘Funding the Growth’ programme, even as it continued investing behind brands. Its premium portfolio maintained strong growth, led by Colgate Visible White Purple, the company’s advanced whitening toothpaste.
The board declared a first interim dividend of ₹24 per equity share for FY26, payable from November 19.
Ahead of the earnings announcement, shares of Colgate-Palmolive India closed at ₹2,300 on the NSE, up 1.7%.
