Colgate Sees Demand Recovering In Second Half Of FY26 After Q1 Profit Slump

Colgate-Palmolive (India) Ltd. sees demand for consumer goods reviving in the second half of fiscal 2026, marked by the festive season when people tend to shop more freely, after it reported a decline in first-quarter profit.

The toothpaste maker's net profit fell 12% to Rs 320.6 crore in the June quarter as feeble urban demand and intensified competition in its core oral care business weighed on sales. Revenue from operations for the toothpaste-to-shower gels maker dropped 4.3% to Rs 1,433 crore.

"Our Q1 results reflect persistent headwinds from tough operating conditions on account of subdued urban demand and elevated competition intensity... We expect to navigate the current challenges and anticipate a gradual recovery in the back half of the year," said its MD & CEO Prabha Narasimhan.

Colgate has been sharpening its focus on differentiated offerings that promise higher quality oral benefits to tackle local competition, leading with a more premium portfolio. "We have made good strides in category premiumisation, with our premium portfolio delivering strong revenue growth," Narasimhan said in a statement.

The company is also facing headwinds due to inflationary pressures.

A 170 basis points increase in raw material costs was partially offset by 20 basis points decrease in ad spends during the quarter. Yet, EBITDA margin contracted by 240 basis points year-on-year to 31.6%.