Summary:
Colgate-Palmolive India reported Q2FY27 revenue growth of 12.3% to ₹1,706 crore, while net profit rose 4.3% to ₹342 crore. EBITDA margin narrowed to 27.8%, shares fell 4.6%, and the company declared a ₹24 interim dividend for FY27.
Colgate-Palmolive (India) Limited shares fell nearly 4.6% on Friday, October 23, 2026, after the company announced its Q2FY27 financial results. The company reported a net profit of ₹342 crore, up 4.3% YoY, and revenue of ₹1,706 crore, up 12.3%. Revenue growth topped double digits, but slower profit growth and a decline in operating margins weighed on the stock.
Colgate Q2FY27 Results: Revenue Up 12.3%, Profit Up 4.3%
Colgate-Palmolive India reported revenue from operations of ₹1,705.8 crore for the September quarter, compared with approximately ₹1,519.5 crore in Q2FY26. The increase was driven by higher demand for toothpaste, particularly in the premium segment.
Net profit stood at ₹341.6 crore, against ₹327.5 crore in the year-ago quarter. Excluding one-off items, profit grew 5.5% YoY.
However, EBITDA increased just 1.7% YoY to ₹473 crore due to higher operating costs.
| Financial Metric | Q2FY27 | Q2FY26 |
| Revenue from operations | ₹1,706 crore | ₹1,520 crore |
| Net profit | ₹342 crore | ₹328 crore |
| EBITDA | ₹473 crore | ₹465 crore |
| EBITDA margin | 27.8% | 30.6% |
| Net profit growth | +4.3% YoY | — |
The company’s EBITDA margin contracted by approximately 280 basis points YoY. However, its gross margin expanded by 40 basis points to 69.6%.
Why Did Colgate Shares Fall After Q2 Results?
Colgate shares declined approximately 4.6% on October 23 as the company's quarterly profit growth continued to lag significantly behind its revenue growth.
Another major concern was the contraction in operating margins. Higher advertising expenditure, investments in premium products and fluctuations in commodity costs affected profitability.
The company reported EBITDA of approximately ₹473 crore, while its operating margin declined to 27.8% from 30.6% YoY.
The stock had already fallen 2.32% to close at ₹1,685 on the BSE on October 22, ahead of the financial results announcement.
The latest decline also came amid weakness in the broader equity market, with rising crude oil prices adding pressure on consumer-oriented businesses.
Toothpaste Business Sees Strong Volume Growth
Despite margin pressure, Colgate's core oral care business witnessed healthy demand.
The toothpaste portfolio recorded high-single-digit volume growth, driven by premium products and Colgate MaxFresh. The company also reported its second consecutive quarter of double-digit domestic sales growth.
Its Funding the Growth cost-efficiency programme contributed to the improvement in gross margins during the quarter.
At the same time, Colgate increased its investments in brand building and premiumisation. These investments resulted in higher expenses, offsetting the benefits of stronger revenue growth on operating profit.
Colgate Declares ₹24 Interim Dividend for FY27
Along with its quarterly results, the company's board announced its first interim dividend of ₹24 per equity share for FY27.
The dividend represents 2,400% of the share's face value of ₹1.
The record date has been fixed as November 2, 2026, while dividend payments will begin from November 19, 2026.
The total dividend payout will amount to ₹653 crore.
Colgate's Q2FY27 performance reflects the strength of demand for its oral care products, but higher costs have affected profitability. Going forward, the company's financial performance will continue to be influenced by revenue growth, operating margins, commodity prices and advertising expenditure.
