Colgate-Palmolive India reported a sharp recovery in the March quarter, led by premium oral-care products, higher advertising spends and improving urban demand, even as its full-year attributable net profit declined in FY26 due to GST-related impact and a weak first half.

Revenue from operations rose 9 per cent year-on-year to ₹1,583 crore in Q4 FY26 from ₹1,452 crore in the year-ago period, an absolute increase of ₹131 crore. Attributable net profit was broadly flat at ₹353 crore versus ₹355 crore a year earlier, while adjusted attributable profit, excluding one-offs, exceptional items and the GST-led inverted duty structure impact, grew 9.2 per cent year-on-year, according to the company.

For FY26, revenue from operations remained flat at ₹5,984 crore, while attributable net profit declined 1.8 per cent to ₹1,325 crore from about ₹1,349 crore in FY25. The company said the reported decline was largely due to GST-related inverted duty structure impact and a high base from exceptional tax-refund interest income in the prior year.

The second half of FY26 showed a clear recovery trend, with H2 net sales growth of 5.2 per cent, indicating improving demand conditions after a softer first half.

“Strong rebound in growth with broad-based performance across portfolio,” Colgate said in its earnings release, adding that it continued to invest behind premiumisation and consumption-building initiatives.

Advertising spend

Advertising spend in Q4 rose 10 per ent year-on-year to ₹199 crore, or 12.6 per cent of net sales, as the company stepped up investments behind premium oral-care products and consumer outreach programmes. Full-year advertising spend stood at ₹819 crore, or 13. per cent of sales.

Despite the higher investments, Colgate maintained one of the strongest profitability profiles in the FMCG sector. Gross margin stood at 69.6 per cent in Q4 and 69.3 per cent for FY26, while EBITDA margin came in at 32.2 per cent for the quarter and 31.2 per cent for the full year.

The company said savings from its “Funding the Growth” programme were being reinvested into product superiority, digital capabilities and innovation, supporting its premiumisation push rather than near-term earnings maximisation.

The March-quarter recovery was aided by improving urban toothpaste demand, stronger traction in premium products such as Colgate Total and Visible White, and rural consumption-building initiatives aimed at increasing brushing frequency and oral-health awareness.

Colgate said more than half of rural Indians still do not brush daily, prompting it to expand behavioural-change pilots in rural Uttar Pradesh through schools, dentists, wall paintings and street plays. The company said the pilot led to a 17% improvement in twice-daily brushing behaviour.

The company is also accelerating its premium oral-care portfolio. Colgate said Visible White is growing four times faster than the broader toothpaste category, while Colgate Total is being positioned as a preventive-care platform backed by dual zinc-arginine technology and dentist-led campaigns.

Digital channels are emerging as an important growth and profitability lever, with premium products scaling faster online and margins in digital channels running above company averages, according to management commentary.

The board declared a second interim dividend of ₹24 per share, taking the total FY26 dividend payout to ₹48 per share.

Published on May 22, 2026