Colgate Palmolive India’s net profit falls 11.8 pc, net sales decline

Colgate-Palmolive India reported an 11.8% YoY decline in Q1 FY26 net profit to Rs 321 crore, citing weak urban demand and rising competition. The company is focusing on premium products and innovation to drive recovery in the second half

Mumbai: Colgate-Palmolive India on Tuesday reported an 11.8 per cent year-on-year (YoY) decline in its net profit to Rs 321 crore for the April–June quarter of FY26 (Q1 FY26), compared to Rs 364 crore in the corresponding period of the previous fiscal (Q1 FY25).

The company’s net sales also fell by 4.4 per cent, dropping from Rs 1,486 crore in Q1 FY25 to Rs 1,421 crore this quarter, according to a filing with the stock exchanges.

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Revenue from operations declined by 4.3 per cent to Rs 1,433 crore, down from Rs 1,496.71 crore in the year-ago period.

Colgate’s operating margin contracted to 31.6 per cent from 34 per cent in the same quarter last year, reflecting a drop of 240 basis points. Its earnings before interest, taxes, depreciation and amortisation (EBITDA) also declined 11 per cent to Rs 453 crore, compared to Rs 508.34 crore in Q1 FY25.

Commenting on the results, Prabha Narasimhan, Managing Director and CEO of Colgate-Palmolive India, said the performance was impacted by weak urban demand and rising competition. She also pointed to the high base effect from the previous year, during which net sales had grown at a compound annual growth rate (CAGR) of 12 per cent between Q1 FY23 and Q1 FY25.

Despite these challenges, Narasimhan said the company continued to invest in strategic areas, including brand building and product innovation. She noted that Colgate had made good progress in the premium category, which delivered strong revenue growth.

“The company also used its healthy profit margins to boost brand investment,” she said.

In line with its innovation-led strategy, Colgate introduced several new products during the quarter. These included Colgate Kids Squeezy Toothpaste in strawberry and watermelon flavours, targeting children aged 3 to 6 years, and the MaxFresh Mouthwash Sachet Stick in Fresh Tea flavour, aimed at consumers seeking portable freshness.

Looking ahead, Narasimhan expressed confidence in the company’s growth strategy and said market conditions are expected to improve in the second half of the financial year.