Colgate Palmolive India profit flat in Q3 on GST, labour code impact

Colgate Palmolive India's December-quarter profit remained unchanged as costs from new labour codes and GST-related charges offset modest revenue growth

Colgate Palmolive India saw its net profit remain flat in the quarter ended December at ₹323.9 crore due to the impact of regulatory changes, including the introduction of the new labour code and charges related to inverted duty structures following GST changes. 

The oral care major saw its revenue rise to ₹1,486.1 crore, up 1.7 per cent compared to the same period last year. 

What drove Colgate Palmolive India’s Q3 performance? 

In its earnings release, Prabha Narasimhan, managing director and chief executive officer of Colgate-Palmolive (India), said: “In the third quarter, our business saw a return to growth, driven by early positive signs in our core portfolio and sustained strong performance in the premium segment. Both urban and rural trade channels experienced improved momentum throughout the quarter, indicating a recovery following the disruption caused by the implementation of revised GST rates.”

 

 

How is the company positioning for future growth? 

She added: “We also accelerated brand investments to further advance our strategy of premiumisation within the oral care category. We expect our growth momentum to accelerate going forward, driven by an improving demand environment and our intense focus on on-the-ground and superior execution.”

 

What was the impact on margins? 

On the margin front, Narasimhan said the company maintained a robust gross margin profile for the quarter, driven by strict financial discipline through its ‘Funding the Growth’ programme. Q3FY26 gross margin stood at 69.7 per cent, higher than the trailing quarter by over 50 basis points, she added.