October 24, 2025

Colgate-Palmolive (India) Limited felt some bumps in its Q2 FY26 ride after the government slashed GST on oral care products from a hefty 18% down to just 5%. While this move made customers smile with more savings, it caused a twist in the supply chain at distributors and retailers. The company’s net sales for the quarter stood at Rs 1,507 crore. This was a 6.3% drop compared to the same quarter last year, though it bounced up 6.1% from the previous quarter’s Rs 1,421 crore. Net profit after tax was Rs 328 crore, down from Rs 395 crore a year back. Adjusted for a one-time tax refund interest, profits fell by 7.2%. Prabha Narasimhan, Managing Director & CEO, welcomed the change enthusiastically: "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." However, she pointed out the challenges too. "Our second quarter performance also reflects the transitory disruption at distributors and retailers across channels caused by GST rate revision. 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." Despite the hurdles, Colgate kept its margins strong thanks to its "Funding The Growth" program. The company continued investing in premium products, shining the spotlight on Colgate Visible White Purple toothpaste. But that’s not all! Colgate-Palmolive also launched the Palmolive Moments body wash range, packed with natural extracts and special patented fragrances to refresh customers. Plus, it rolled out the exciting “CAVITY-PROOF” campaign for kids under Colgate Strong Teeth, featuring its 24-hour anti-cavity Arginine + Calcium Boost technology. Adding some extra cheer for shareholders, the board declared a first interim dividend of Rs. 24 per share. Yes, the GST cut caused some short-term trouble in distribution, but consumers got to enjoy lower prices and better choices. Colgate-Palmolive expects the market will settle soon and stay tuned to long-term growth with exciting products and steady progress.

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Tags: Colgate-palmolive, Gst cut, Oral care, Q2 fy26, Consumer savings, Market disruption,