Colgate July-September Profit Falls 17% on GST Disruption, Weak Sales

Colgate–Palmolive (India) Ltd. reported its steepest on-year fall in quarterly profit since Dec 2016, as sales were hit by temporary disruptions at distributors and retailers following goods and services tax cuts. The company’s bottom line declined for the fourth straight quarter, while revenue fell for the third consecutive quarter.

Net profit dropped 17% on year to ₹3.28 billion, while revenue from operations fell 6% to ₹15.20 billion. Sequentially, profit rose 2% and revenue increased 6%.

Managing Director and CEO Prabha Narasimhan said the first half of the year came on a high base of double-digit sales growth and expects a gradual recovery in the second half.

Despite a 6% fall in total expenses to ₹10.92 billion, profit declined sharply. Material costs, which make up over a third of total expenses, fell 12% to ₹3.94 billion but remained the highest in the past four quarters. Advertising spend fell 7% to ₹2.25 billion, while other expenses slipped 2% to ₹2.47 billion. Employee costs were nearly flat at ₹1.18 billion, and finance cost fell 14% to ₹9.9 million. Tax outgo declined 15% to ₹1.15 billion.

For April–September, net profit fell 15% to ₹6.48 billion and revenue dropped 5% to ₹29.28 billion, reflecting a high base last year. The company declared a first interim dividend of ₹24 per share for 2025-2026, with November 3 as the record date.

Narasimhan said margins remained resilient due to its Funding the Growth programme, and Colgate will continue investing in brands despite top-line pressures. The company said its premium portfolio maintained strong growth momentum, led by Colgate Visible White Purple toothpaste.