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  5. Colgate-Palmolive India shares hit 52-week low as Q2 margin slips; here's what Jefferies, Goldman Sachs analysts said

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Colgate-Palmolive India shares hit 52-week low as Q2 margin slips; here's what Jefferies, Goldman Sachs analysts said

image Ahana Chatterjee
By Ahana Chatterjee

4 min read | Updated on October 23, 2026, 11:17 IST

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SUMMARY

Along with the earnings, the board declared the first interim dividend of ₹24 per equity share of face value of ₹1 each for FY27.

Stock list

COLPAL
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Colgate-Palmolive-India-share-price-Oct-23

Colgate’s revenue from operations jumped 13% in Q2 FY27 to ₹1,728 crore as compared to ₹1,535 crore on a YoY basis. | Image: Shutterstock

Colgate Palmolive India shares declined 5% to hit a 52-week low of ₹1,597.70 apiece on Friday, October 23, after the company reported a drop in margin for the quarter ended September 30, 2026 (Q2 FY27).
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The personal care firm posted a net profit of ₹342 crore for the July-September quarter (Q2 FY27), marking a growth of 4% from ₹327.5 crore logged in the same period last year. “Excluding one-offs and exceptional items, net profit after tax grew by 5.5% year-on-year,” Colgate said.

The company’s revenue from operations jumped 13% in Q2 FY27 to ₹1,728 crore as compared to ₹1,535 crore on a year-on-year (YoY) basis.

On the operational front, Colgate’s earnings before interest, taxes, depreciation & amortisation (EBITDA) for the quarter increased 2% to ₹1,096 crore in Q2 FY27 from ₹1,076 crore in the corresponding quarter for the previous fiscal year.

The EBITDA margin for the quarter contracted to 63.4% in the reporting quarter in contrast to 70.1% YoY.

Also read: Cyient, TCS, Infosys: IT stocks power ahead as NIFTY IT surges 16% in a month — what’s driving the rally?

Dividend details

Along with the earnings, the board declared the first interim dividend of ₹24 per equity share of face value of ₹1 each for FY27. The total dividend payout to the shareholders will be ₹653 crore and will be paid on and from November 19 to the shareholders.

What management said

“We are delighted to report double-digit topline growth for the second consecutive quarter. This consistent performance reflects broad-based growth momentum across our brands and distribution channels. The Toothpaste portfolio delivered high-single digit volume expansion, led by our Premium Toothpaste range and strong performance in Colgate MaxFresh,” said Manish Anandani, Managing Director & CEO of Colgate-Palmolive (India).

“Driven by a consistent focus on the Funding the Growth program, gross margin expanded by 40 bps year-on-year to 69.6% in Q2. We remain committed to navigating commodity cost fluctuations through disciplined cost savings and calibrated pricing actions. Capitalising on this healthy and competitive margin profile, we further stepped-up investments in brand building & premiumisation throughout the quarter,” said Anandani.

Anandani said the company expects to deliver robust growth, supported by a science-backed product portfolio tailored to consumer benefits and strategic advertising investments.

Analysts' view on Colgate Q2

Jefferies analysts said Colgate’s advertising spending rose to around 19% of revenue, its highest level in multiple quarters. While the increase reflects continued investments to drive growth, it weighed on EBITDA margins.

The new CEO expects strong growth ahead, supported by a science-backed product portfolio and continued investments. Jefferies cut its earnings per share (EPS) estimates by 3-4%.

Also read: Swiggy shares crash nearly 15% post-Q2 earnings; what spooked investors
Analysts from HSBC said Colgate’s Q2 FY27 sales rose 12% year-on-year, with volumes growing at a high-single-digit rate. However, sales were 1-2% below HSBC’s estimates and consensus expectations. Advertising spending increased 40% YoY, which HSBC considers the right approach but also a key reason for the 8-10% miss against its estimates and consensus. The analysts added that underlying growth remained tepid, with first-half growth of 12% coming from a low base.
Furthermore, Goldman Sachs analysts said Colgate reported double-digit growth in Q2 FY27, supported by a fragile base. EBITDA margins, however, fell short of expectations and decreased as a result of higher advertising expenditures.

At 11:05 AM, Colgate Palmolive India shares were trading at ₹1,606.10 apiece on the National Stock Exchange, falling 4.68%. The company has a total market capitalisation of ₹43,765.21 crore.

Disclaimer: This article is written purely for informational purposes and should not be considered investment advice from Upstox. Securities mentioned are illustrative and not recommendations. Please consult a financial advisor before making any investment decisions.

About The Author

image Ahana Chatterjee
Ahana Chatterjee is a business journalist with 7 years of experience across several leading news platforms. At Upstox, she covers stock markets and corporate news.

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