Competition may keep Colgate under pressure

Recovery in H2FY26 expected to be gradual, say brokerages

- TANMAY TIWARY

Colgate-Palmolive India’s September quarter (Q2FY26) performance has reinforced concerns among brokerages about the company’s continued market challenges.

Analysts say the toothpaste major’s volumes and revenue were hit by a ‘double whammy’ of goods and services tax (GST) rate cuts and intense competition, with limited signs of a near-term recovery.

According to Japan-based brokerage Nomura Research, Colgate’s toothpaste volumes fell an estimated 8.5 per cent year-on-year (Yo-Y), higher than their expectation of a 5 per cent decline. It is primarily due to temporary disruptions at distributors and retailers following GST rate cuts.

Revenue, meanwhile, declined 6.3 per cent Yo-Y, broadly in line with Nomura’s estimates but below Bloomberg consensus forecasts of a 3 per cent drop.

Analysts at Nomura highlighted that Colgate’s premium offerings, led by Colgate Visible White Purple, continued to grow. They were supported by targeted marketing campaigns, including the new “Cavity-Proof” initiative under Colgate Strong Teeth and the launch of three body washes in the Moments range.