Revenue from operations also declined 6.3% to Rs 1,507 crore from Rs 1,609 crore reported in Q2FY25.
Both the topline and bottomline were impacted by the recent revision in Goods and Services Tax (GST) rates, with the entire oral care portfolio now taxed at 5%, down from 18%. The company stated in its exchange filing that, excluding the one-time impact of interest on tax refunds in the base quarter, the profit decline stood at 7.2%.
Despite the year-on-year weakness, Colgate-Palmolive showed some resilience on a sequential basis. Profit after tax rose 2.1% over the previous quarter’s Rs 321 crore, while revenue improved 6.1% from Rs 1,421 crore in Q1FY26.
The company also declared its first interim dividend of Rs 24 per equity share for the financial year 2025-26, with the record date set as November 3 and the dividend payout scheduled for November 19.
Managing Director and CEO Prabha Narasimhan commented, “During the quarter, GST rates on our entire oral care portfolio were reduced from 18% to 5%. We welcome this move by the government as this is a timely step in boosting consumer confidence while recognising oral health as a growing priority. We worked closely with all our customers to pass on lower prices to consumers from the effective date.”She acknowledged that the company faced difficulties in the operating environment during the second quarter, attributing the performance partly to “transitory disruption at distributors and retailers across channels caused by the GST rate revision.”Looking ahead, Narasimhan noted, “Our first half performance cycles a high base of double-digit net sales growth in the base period, and we expect a gradual recovery in performance in the second half. Our margin profile remains resilient, driven by a strong focus on the execution of our Funding The Growth program.” She also highlighted the continued strong momentum in the premium portfolio, led by Colgate Visible White Purple, the company’s advanced whitening toothpaste.
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