Colgate Palmolive shares sink 5% as margin miss in Q2 disappoints Street

Colgate-Palmolive India reported its net profit at Rs 395.05 crore, up 16.2 percent on-year for Q2.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

FMCG major Colgate-Palmolive India sank almost five percent into the red during the early session on October 25, as the Street digested the toothpaste maker's earnings show for the quarter ended September.

Colgate-Palmolive India reported its net profit at Rs 395.05 crore, up 16.2 percent on-year, led by a broad-based growth across portfolios, against Rs 340.05 crore  during the same quarter last fiscal.

Its sales were up 10.04 per cent to Rs 1,609.21 crore during the quarter under review. It was at Rs 1,462.38 crore in the corresponding period a year ago.

However, the EBITDA grew only three percent, falling under estimates, as a result of a 205 basis points fall in margins. The ,anagement has called out some moderation in growth in view of the
challenging demand environment and correction in margins given high promotional intensity.

At 10.52 am, shares of Colgate Palmolive were quoting Rs 3,122.55 per share on the NSE, lower by 2.8 percent.

Follow our market blog to catch all the updates

Colgate Palmolive's results were a mixed bag – as it surprised with high single-digit volume growth in the toothpaste segment and double-digit revenue growth in the toothbrush segment, said HDFC Securities.

"In our view, this is the best performance among the consumer companies that have reported results so far, but one needs to be mindful of – (a) the favourable base and (b) volume growth revival on the back of high-decibel ad campaigns," the brokerage added. HDFC Securities has a Rs 3,275 target price on Colgate Palmolive, with a 'reduce' rating.

"We trim our revenue forecasts by 1 percent, cut gross margin by 105-145 bps and EBITDA margin by 120-160 bps, leading to 3-5% cut in FY2025-27E EPS," said Kotak Institutional Equities. The brokerage cut its target price on ColPal to Rs 2,825 per share, maintaining its 'reduce' rating.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.