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Informist, Thursday, May 21, 2026

 

By Prateem Rohanekar

 

MUMBAI – Colgate-Palmolive (India) Ltd. is expected to report only single-digit growth on year and sequentially in its revenue for the March quarter because of muted sales volumes. Pressure on the company's margins from an inverted duty structure under the goods and services tax is likely to result in a fall in its net profit, according to brokerages.

 

Colgate-Palmolive (India) is expected to report a standalone net profit of INR 3.52 billion, down nearly 1% on year, according to an average of estimates from 12 brokerages. Sequentially, this would be a rise of nearly 6%. The company is expected to report net sales of INR 15.30 billion, up nearly 5% on year, by the average of estimates.

 

Motilal Oswal Financial Services Ltd. has the highest estimate for the company's net profit at INR 3.77 billion and Nuvama Wealth Management Ltd. has the lowest estimate at INR 3.28 billion. Systematix Shares and Stocks (India) Ltd. has the highest estimate for the company's net sales at INR 15.61 billion and Batlivala & Karani Securities India Pvt. Ltd. has the lowest estimate at INR 14.92 billion.

 

Systematix expects Colgate-Palmolive to report 5% year-on-year growth in volume, aided by a weak base, with price and mix gains of around 1.5% partly impacted by trade incentives. The brokerage expects continued spending on trade and consumer promotions amid high competition, which, along with lower realisations and limited operating leverage, may weigh on the company's margins.

 

Motilal Oswal expects demand for the company's products to have remained subdued in the quarter. The brokerage expects the company to report 4% year-on-year revenue growth for the quarter on 2% volume growth. The company's revenue growth is expected to be aided by the price mix. Its gross profit margin is expected to be 70.6%, flat on year.

 

Nuvama expects the company's revenue to increase 4% on year for the reporting quarter. The brokerage estimates the company's volumes in the quarter to have remained flat on year. It sees the gross margin decreasing by 151 basis points on year to 69.1%. Nuvama expects Colgate-Palmolive to report mid-tier performance for the reporting quarter amongst its peers.

 

The company's earnings before interest, tax, depreciation, and amortisation are expected to be INR 4.90 billion, as per the average of estimates. Prabhudas Lilladher Pvt. Ltd. has the highest estimate for the EBITDA at INR 5.18 billion and Nuvama has the lowest at INR 4.57 billion.

 

Motilal Oswal expects the company's EBITDA margin to contract by 60 bps on year to 33.4%. Nuvama estimates the EBITDA to dip 8.2% on year because of unused input tax credit and the EBITDA margin to fall by 405 bps to 30%.

 

Colgate-Palmolive (India) will announce its earnings for the March quarter Friday. Investors should look out for the company's commentary on demand trends, gains from new launches, and the performance of its core portfolio, as per Systematix's report.

 

At 1104 IST, shares of Colgate-Palmolive were at INR 2,175 on the National Stock Exchange, down 0.5% from Wednesday. The stock has appreciated nearly 3% since the company reported its December quarter earnings on Jan. 29.

 

Of the 13 brokerage reports on the company available with Informist, five have a "buy" or equivalent recommendation on the stock with an average target price of INR 2,545, about 17% higher than the current market price. Four brokerages have a "hold" call with an average target price of INR 2,339. The rest say "sell".

 

Following are the March quarter earnings estimates, in INR billion, for Colgate-Palmolive (India) from 12 brokerages in descending order of the net profit estimate:

 

Brokerage	Net Sales	Net Profit	EBITDA
Motilal Oswal Financial Services Ltd.	15.27	3.77	5.11
Nirmal Bang Equities Pvt. Ltd.	15.28	3.63	4.97
Elara Securities (India) Pvt. Ltd.	15.40	3.60	4.70
JM Financial Institutional Securities Pvt. Ltd.	15.18	3.60	5.00
Prabhudas Lilladher Pvt. Ltd.	15.36	3.60	5.18
Kotak Securities Ltd.	15.35	3.58	5.03
Systematix Shares and Stocks (India) Ltd.	15.61	3.53	5.03
Nomura Equity Research	15.18	3.48	4.91
YES Securities (India) Ltd.	15.45	3.47	4.72
Equirus Securities Pvt. Ltd.	15.40	3.33	4.67
B&K Securities	14.92	3.33	0.00
Nuvama Wealth Management Ltd.	15.25	3.28	4.57
Average	15.30	3.52	4.90

 

End

 

Edited by Rajeev Pai

 

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