Colgate-Palmolive (India) Limited reported a subdued performance for the second quarter of FY26 on October 23, 2025, reflecting the impact of GST-led disruptions and a high base effect from last year. The oral care major posted a 16.9% year-on-year decline in its profit after tax, which stood at ₹327.51 crore, compared to ₹395.05 crore in the same quarter a year ago.
Revenue from operations came in at ₹1,507.24 crore, marking a 6.3% decline from ₹1,609.21 crore in the corresponding period of the previous fiscal. The fall in both profit and revenue highlights the challenging operating environment faced by the company during the quarter.
Performance and Operational Challenges
According to the management, the September quarter was influenced by temporary disruptions at distributor and retailer levels due to the reduction in GST rates on oral care products from 18% to 5%. These adjustments led to short-term supply chain disturbances across channels, impacting sales momentum.
Despite these headwinds, Colgate maintained its operating margin at around 30%, supported by strong execution under its ‘Funding the Growth’ programme. This initiative focuses on driving operational efficiencies and optimising costs.
Sequentially, net sales rose 6.1% from the June quarter, suggesting early signs of recovery. The company emphasised that while the first half of FY26 cycled a high base of double-digit sales growth, it expects performance to gradually improve in the latter half of the year.
Dividend Announcement
The Board of Directors declared a first interim dividend of ₹24 per equity share (face value ₹1 each) for FY26. The total payout to shareholders amounts to ₹652.8 crore, with the dividend scheduled for payment on and from 19 November 2025. The record date for eligibility has been set as 3 November 2025.
Also Read:
- Hindustan Unilever Q2 FY26 Results: Net Profit Rises 4% YoY, Revenue Up 2%
- Bank of India Q2 FY26 Results: Net Profit Rises 7.6% YoY to ₹2,554 Crore; NII Marginally Down 1.2%
- Reliance Industries Q2 FY26 Results: PAT Rises 10% YoY, Revenue Up 10%
Leadership Update
In a separate development, Surender Sharma, Whole-time Director – Legal & Company Secretary & Compliance Officer, will step down from his role effective 27 October 2025. Jaikishan Shah, Deputy Company Secretary and Manager – Legal, has been appointed as the new Compliance Officer from 28 October 2025.
Outlook
Despite near-term disruptions, Colgate-Palmolive India remains optimistic about the long-term growth trajectory of the oral care market. With continued investments in brand innovation, premiumisation, and efficiency initiatives, the company expects a gradual recovery in sales and profitability in the second half of FY26.
The quarter’s results underline Colgate’s strategic resilience — balancing cost efficiency with sustained focus on brand equity — even amid regulatory and market headwinds.
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