Colgate-Palmolive India Q2FY26 results: Net profit down 17.1% on GST cut

Colgate Palmolive India’s net profit dropped 17.1 per cent to ₹327.5 crore in the quarter ended September (Q2), on the back of transitory disruptions at distributors and retailers across channels caused by the goods and services tax (GST) rate revision.  

The oral care major saw its revenue fall to ₹1,507.2 crore, down 6.3 per cent compared to the same period last year. 

Its profit before interest, depreciation, and taxation (Pbidt) was down 16.2 per cent at ₹480.5 crore in the same quarter.  

In its earnings release, Prabha Narasimhan, managing director & chief executive officer of Colgate-Palmolive (India), said: “During the quarter, GST rates on our entire oral care portfolio were reduced from 18 per cent to 5 per cent. We welcome this move by the government as this is a timely step in boosting consumer confidence while recognising oral health as a growing priority. We worked closely with all our customers to pass on lower prices to consumers from the effective date.”  

She also said that while the company continued to navigate through a difficult operating environment, its second-quarter performance reflected the transitory disruption at distributors and retailers across channels caused by the GST rate revision.  

“Our first half performance cycles a high base of double-digit net sales growth in the base period, and we expect a gradual recovery in performance in the second half,” she said. 

“Our margin profile remains resilient, driven by a strong focus on execution of our Funding The Growth programme. Despite topline headwinds, we remain committed to our long-term strategic goals and continue to prioritse brand investments,” she added. 

She said that the premium portfolio continued strong growth momentum, led by Colgate Visible White Purple, our advanced whitening toothpaste.