GST rate cut triggers short-term distribution disruption as company maintains brand investments and declares Rs 24 interim dividend
Colgate-Palmolive (India) reported a 6.3 per cent year-on-year decline in net sales to Rs 1,507 crore for the quarter ended 30 September 2025 (Q2 FY26), compared with Rs 1,609 crore in the same quarter last year. Revenue, however, rose 6.1 per cent sequentially from Rs 1,421 crore reported in the June quarter.
Net profit for the quarter stood at Rs 328 crore, down from Rs 395 crore a year earlier. The company said that, excluding the one-time impact of interest on a tax refund in the base period, profit fell 7.2 per cent.
The quarter was marked by a high base and disruptions linked to changes in Goods and Services Tax (GST) rates on oral care products.
“GST rates on our entire oral care portfolio were reduced from 18 per cent to 5 per cent. We welcome this move by the government as this is a timely step in boosting consumer confidence while recognising oral health as a growing priority. We worked closely with all our customers to pass on lower prices to consumers from the effective date”, said Prabha Narasimhan, Managing Director and CEO.
Narasimhan noted that the GST revision led to temporary disruption across distributor and retail channels, affecting second-quarter performance. She added that the first half of FY26 faced a high base of double-digit net sales growth, and the company expects a gradual recovery in the second half.
The Board declared a first interim dividend of Rs. 24 per equity share (face value Re. 1) for FY26. The total payout amounts to Rs. 652.8 crore. The dividend will be paid from 19 November 2025 to shareholders on record as of 3 November 2025.
Colgate said its margin profile remained resilient, supported by the execution of its Funding the Growth programme. It reiterated its commitment to long-term strategic priorities and continued brand investments. The premium portfolio maintained momentum, led by Colgate Visible White Purple.
During the quarter, the company launched Palmolive Moments, a new body wash range with 100 per cent natural extracts and patented fragrance technologies, positioned around distinct daily bathing occasions. It also rolled out a new “CAVITY-PROOF” campaign for Colgate Strong Teeth, highlighting its Arginine + Calcium Boost formulation.
