Why Did Colgate-Palmolive India's Q2 Profit Decline by 17%?
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Synopsis
Colgate-Palmolive (India) Limited has revealed a notable decline in its Q2 FY26 profit, sparking discussions about the impact of GST changes and market conditions. With revenue dipping and dividends declared, the company remains focused on its long-term strategies amidst short-term challenges.
Key Takeaways
- Net profit fell by 17% in Q2 FY26.
- Revenue declined 6.15% YoY.
- EBITDA decreased by 6%.
- Interim dividend of Rs 24 announced.
- Stock closed 1.16% higher post-announcement.
Mumbai, Oct 23 (NationPress) Colgate-Palmolive (India) Limited announced a significant 17% decrease in its net profit for the second quarter of the current financial year (Q2 FY26) on Thursday.
The company's profit for the quarter ending September 2025 registered at Rs 327.50 crore, down from Rs 395.05 crore during the same period last fiscal year (Q2 FY25), as disclosed in its stock exchange filing.
Revenue also experienced a decline of 6.15% year-on-year (YoY), totaling Rs 1,519.50 crore, a drop from Rs 1,619.11 crore in the previous fiscal year.
Operating income or EBITDA fell by 6% to Rs 465.43 crore, with the EBITDA margin remaining relatively stable at 30.6%, compared to 30.7% in the last financial year.
Prabha Narasimhan, Managing Director and CEO of Colgate-Palmolive India, indicated that the quarterly performance was affected by temporary disruptions among distributors and retailers, attributed to the GST rate revision.
She mentioned that the company collaborated with its partners to ensure consumers could take advantage of lower prices resulting from the tax changes.
“In spite of these short-term hurdles, we are committed to our long-term strategic objectives and will persist in our investments in our brands,” Narasimhan stated.
Along with the financial results, the company declared a first interim dividend of Rs 24 per share for the fiscal year 2025–26, culminating in a total payout of Rs 652.8 crore.
The record date for this dividend has been established as November 3, with payments to be made on or before November 19, as per the company's exchange filing.
The quarterly results were published after market hours, with shares of Colgate-Palmolive (India) closing at Rs 2,286.90, a rise of 1.16% on the NSE.
However, the stock has seen a decline of 31.35% over the past year and 14.69% so far in 2025.
Point of View
It is crucial to convey that while Colgate-Palmolive (India) Limited faces challenges reflected in its recent fiscal reports, the overarching strategy remains focused on resilience and adaptability. The company's proactive measures to ensure consumer benefits amid tax adjustments signify its commitment to the market.
NationPress
23/10/2025
Frequently Asked Questions
What caused the profit decline in Q2 FY26?
The profit decline was primarily due to temporary disruptions among distributors and retailers related to the GST rate revision.
What is the interim dividend announced?
Colgate-Palmolive (India) announced a first interim dividend of Rs 24 per share for the financial year 2025–26.
When will the dividend be paid?
The dividend payment will be made on or before November 19, with a record date set for November 3.
How did the stock perform after the results announcement?
After the results were released, shares of Colgate-Palmolive (India) closed 1.16% higher at Rs 2,286.90.
What is the company's outlook moving forward?
Despite short-term challenges, Colgate-Palmolive (India) remains focused on long-term strategic goals and brand investments.
