Colgate Q2 net profit, revenue miss estimates despite strong toothpaste demand

Bloomberg consensus estimates had pegged net profit for Q2 at Rs 368 crore. 3% to Rs 1,706 crore from Rs 1,520 crore, reported a year earlier, marginally below Bloomberg consensus estimates of Rs 1,719 crore for the period. Earnings before interest tax depreciation and amortisation (Ebitda) rose 1.7% year-on-year to Rs 473 crore, below street estimates of Rs 514 crore for the quarter. While Ebitda margins declined 280 basis points to 27.8% in Q2 versus 30.6% reported last year.

Colgate's toothpaste portfolio delivered high-single-digit volume growth, led by its premium toothpaste range and strong performance in Colgate MaxFresh. Gross margin expanded 40 basis points year-on-year to 69.6%, helped by the company's Funding the Growth programme. "We remain committed to navigating commodity cost fluctuations through disciplined cost savings and calibrated pricing actions," said Managing Director and CEO Manish Anandani.

This is the first earnings report under Anandani who took over on September 28 after incumbent Prabha Narasimhan was elevated to an Asia-Pacific regional marketing role at the parent firm. Analysts at HDFC Securities had expected Colgate's growth to be driven by 12% volume growth on a low base, while analysts at Jefferies had forecast double-digit volumes and mid-single-digit pricing growth. Shares of Colgate-Palmolive India fell 2.8% intra-day on the BSE, before closing at Rs 1,685 a piece, down 2.32% versus the previous day's close.

The company declared an interim dividend of Rs 24 per equity share, with the record date set for November 2, 2026, and payment starting November 19, 2026.