Colgate-Palmolive Q2 Results: PAT falls 17% YoY, revenue down 6% on GST transition. Check dividend

FMCG major Colgate-Palmolive (India) reported a 17% fall in its September quarter net profit at Rs 328 crore versus Rs 395 crore in the year-ago period. The company’s revenue from operations in the quarter under review stood at Rs 1,507 crore, down 6.3% from Rs 1,609 crore reported in Q2FY25. Both the topline and bottomline took a hit as the Goods and Services Tax (GST) rates on the company’s entire oral care portfolio were reduced from 18% to 5%.

The company, in its filing to the exchanges, said that excluding the one-time impact of interest on tax refund in the base year, profit declined by 7.2%.

The company also declared the first interim dividend of Rs 24 per equity share for the financial year 2025-26. The interim dividend will be paid on November 19, with November 3 set as the record date.

Colgate-Palmolive’s profit after tax (PAT) was up 2.1% on a sequential basis over Rs 321 crore, while the revenue jumped 6.1% on a quarter-on-quarter basis compared to Rs 1,421 crore for the quarter-ended June 30, 2025.

Commenting on the company’s quarterly performance, Managing Director & CEO Prabha Narasimhan said, “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 said.

The MD & CEO acknowledged the difficulties in the operating environment during the second quarter. She said that the current performance also reflected the transitory disruption at distributors and retailers across channels caused by the GST rate revision.Also Read: HUL Q2 Results: Cons PAT rises 4% YoY to Rs 2,685 crore; revenue up 2%“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. Despite topline headwinds, we remain committed to our long-term strategic goals and continue to prioritise brand investments. The premium portfolio continued strong growth momentum led by Colgate Visible White Purple, our advanced whitening toothpaste,” she added.

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