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EquityWireEarnings Review: Colgate logs worst PAT fall since Q3 FY17 as GST cut bites
Earnings Review

Colgate logs worst PAT fall since Q3 FY17 as GST cut bites

This story was originally published at 17:18 IST on 23 October 2025
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Informist, Thursday, Oct. 23, 2025

 

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--Colgate Jul-Sept net profit INR 3.28 bln 
--Analysts saw Colgate Jul-Sept net profit at INR 3.34 bln 
--Colgate Jul-Sept revenue INR 15.20 bln 
--Analysts saw Colgate Jul-Sept revenue at INR 15.42 bln 
--Colgate Jul-Sept PAT INR 3.27 bln vs INR 3.95 bln year ago 
--Colgate Jul-Sept revenue INR 15.20 bln vs INR 16.19 bln year ago 
--Colgate to pay INR 24 per share first interim dividend for FY26 
--Colgate interim dividend record date is Nov 3 
--Colgate Apr-Sept PAT INR 6.48 bln vs INR 7.59 bln year ago 
--Colgate Apr-Sept revenue INR 29.54 bln vs INR 31.16 bln year ago 
--Colgate Jul-Sept cost of materials INR 3.94 bln vs INR 4.46 bln year ago 
--Colgate Jul-Sept advertising expense INR 2.25 bln vs INR 2.43 bln year ago 
--Colgate: Q2 was tough on high growth base, saw GST-led disruptions 
--Colgate: GST-led disruptions impacted Jul-Sept sales 
--Colgate: Expect gradual recovery in performance in second half 
--Colgate: Apr-Sept revenue came on high base of last year

 

By Simran Rede

 

MUMBAI – Colgate–Palmolive (India) Ltd. reported its steepest on-year fall in its bottom line during the September quarter since the December quarter of 2016 as its performance was affected by a transitory disruption at the distributors' and retailers' ends across channels due to the cut in goods and services tax. The fast moving consumer goods company's bottom line fell on year for the fourth straight quarter and top line fell for the third consecutive quarter.

 

Colgate's net profit for the quarter fell over 17% on year to INR 3.28 billion, a tad below the Street's forecast of INR 3.34 billion. Its revenue from operations for the quarter fell over 6% on year to INR 15.20 billion, slightly lower than analysts' estimate of INR 15.42 billion. However, on a sequential basis, the company's net profit rose over 2% and its revenue from operations rose nearly 6%.

 

"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," said Prabha Narasimhan, the company's managing director and chief executive officer, in a statement. 

 

The company's profit fell sharply despite a 6% on-year fall in its total expenses for the September quarter. In total, it spent INR 10.92 billion, of which the cost of materials consumed fell nearly 12% on year to INR 3.94 billion. Raw material costs, which make for over 36% of Colgate's total expenses, fell year-on-year for the third consecutive quarter. Yet, this was the highest the company has incurred in input costs in the last four quarters.

 

Colgate incurred INR 2.25 billion towards advertising expenditures in the reporting quarter, just over 7% lower on year. Its marketing expenses contracted year-on-year for the third time in the last four quarters. The company's other expenses fell nearly 2% on year to INR 2.47 billion.

 

The expenses towards employees fell marginally to INR 1.18 billion in the quarter and its finance cost dropped nearly 14% to INR 9.90 million. Total tax outgo of the company during the quarter was INR 1.15 billion, over 15% lower than INR 1.35 billion a year ago. 

 

In the half-year ended September, the company's net profit fell nearly 15% on year to INR 6.48 billion and its revenue fell over 5% on year to INR 29.28 billion. The fall in Apr-Sept revenue was on a high base of double-digit net sales growth in the year-ago period, the company said. The company will pay INR 24 per share first interim dividend for 2025-26 (Apr-Mar) and has set Nov. 3 as the record date.  

 

"Our margin profile remains resilient driven by strong focus on execution of our Funding The Growth program," Narasimhan said. "Despite topline headwinds, we remain committed to our long term strategic goals and continue to prioritise brand investments." The premium portfolio continued strong growth momentum led by Colgate Visible White Purple toothpaste, the company said.  End

 

Edited by Akul Nishant Akhoury

 

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