Colgate Palmolive shares slip on weak Q1 profit; time to buy, sell or hold?

Colgate share price hit a 52-week low today on the back of weak Q1 results, weighed down by poor demand trends in urban market. Analysts decode the stock strategy going forward

Colgate Palmolive share price today: Shares of the FMCG major, Colgate Palmolive, declined over 2 per cent on Wednesday, July 23, 2025, logging an intraday low, which was also the stock's 52-week low, of ₹2,320.40 per share.

At 9:40 AM, Colgate Palmolive shares were trading at ₹2,330.20, down by 2.07 per cent on the National Stock Exchange. In comparison, NSE Nifty was trading at 25,109.55, up by 48 points or 0.19 per cent. The total market capitalisation of the FMCG company stood at ₹63,378.09 crore.

The selloff on the counter came after the company released its earnings for the first quarter of financial year 2025-2026 (Q1FY26).  FOLLOW STOCK MARKET LATEST UPDATES TODAY LIVE

 

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Colgate Palmolive Q1FY26 earnings

The FMCG company's net profit figure for the quarter ending June 30, 2025, stood at ₹320.62 crore, marking a decline of 11.9 per cent from ₹363.98 crore recorded in the corresponding period of the previous financial year. The company's total revenue also took a hit and stood at ₹1,433 crore, as against ₹1,496.71 crore recorded in the first quarter of FY25, indicating a decline of 4.3 per cent.

The management cited weak urban demand levels coupled with intensified competition in the industry as the primary reasons behind the drop in earnings. "The current quarter performance is also influenced by cycling a high base from the previous year; Net Sales grew at 12 per cent CAGR in the base year, same period (Q1FY23-Q1FY25). We continued to work towards execution of our strategic priorities. We have made good strides in category premiumisation, with our premium portfolio delivering strong revenue growth," said Prabha Narasimhan, managing director and CEO of Colgate-Palmolive (India).

Colgate Palmolive's total expenses for the quarter under review stood at ₹1,020.05 crore, slightly lower than ₹1,030.86 crore reported in the same quarter of the previous fiscal year. However, on a sequential basis, the figure was up from ₹1,003.95 crore reported in the last quarter (Q4FY25).  ALSO READ | M&M Financial share drops 3% on mixed Q1 nos; should you buy, sell or hold?

Should you buy, sell, or hold?

Emkay Global has maintained 'Sell' rating on the stock with a target price (TP) of ₹2,000, citing the prevailing structural pressures. While Colgate Palmolive implemented price hikes across its portfolio, intensified competition from peers led to increased trade promotions. "...Colgate has been active with price hikes. However, competitive stress necessitated higher trade and consumer promotions. This resulted in 170 basis points (bps) year-on-year (Y-o-Y) contraction in the gross margin to 68.9 per cent," the brokerage firm said.

However, according to Nuvama Institutional Equities, Colgate Palmolive might see a performance recovery in the second half of FY26. "Despite persistent headwinds, Colgate continued executing on its strategy of premiumisation and innovation, evident from the strong revenue growth recorded in its premium portfolio. The company maintained high promotional intensity to drive investment behind the brand and expand oral health awareness," Nuvama said while maintaining its 'Buy' rating on the stock at a revised target price of ₹3,135.