Colgate-Palmolive (India) Limited , a leading player in the Indian oral care market, has reported a 6.3% year-on-year decline in net sales for the second quarter of fiscal year 2026, ending September 30, 2025. The company's financial results, released on October 23, 2025, reveal both challenges and strategic moves in a changing market landscape.

Financial Performance

Colgate-Palmolive India reported net sales of Rs 1,507.00 crore for Q2 FY26, down from Rs 1,609.00 crore in the same period last year. However, it's worth noting that there was a 6.1% sequential growth compared to Q1 FY26, where sales stood at Rs 1,421.00 crore.

Net profit after tax for the quarter decreased to Rs 328.00 crore from Rs 395.00 crore year-on-year. Excluding the one-time impact of interest on tax refund in the base year, the profit decline was 7.2%.

Key Highlights

GST Impact and Market Dynamics

A significant factor influencing the quarter's performance was the reduction in GST rates for the oral care portfolio from 18% to 5%. While this move is expected to boost consumer confidence in the long run, it caused short-term disruptions in the distribution channels.

Ms. Prabha Narasimhan, Managing Director & CEO of Colgate-Palmolive (India) Limited, commented on the results: "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."

Strategic Focus and Product Innovation

Despite the topline headwinds, the company maintains its commitment to long-term strategic goals and continues to prioritize brand investments. The premium portfolio showed strong growth momentum, led by Colgate Visible White Purple, an advanced whitening toothpaste.

In Q2, the company introduced Palmolive's newest Moments body wash range, featuring three unique body washes infused with 100% natural extracts and patented fragrance technologies. Additionally, a new campaign "CAVITY-PROOF" was launched under the flagship Colgate Strong Teeth (CST) brand, emphasizing the product's 24-hour non-stop anti-cavity protection for children.

Dividend Declaration

The Board of Directors has declared a first interim dividend of Rs 24.00 per equity share for FY 2025-26. The total dividend payout will amount to Rs 652.80 crore, payable on November 19, 2025, to shareholders on record as of November 3, 2025.

Outlook

While the company faced a challenging quarter, management expects a gradual recovery in performance in the second half of the fiscal year. The company's margin profile remains resilient, driven by a strong focus on executing its Funding The Growth program.

As Colgate-Palmolive India navigates through this transitional period, investors and market watchers will be keen to see how the company's strategies unfold in the coming quarters, particularly in light of the recent GST changes and ongoing market dynamics in the personal care sector.

In a significant shift in India's oral care market, Colgate Palmolive , long considered the dominant player in the toothpaste segment, has witnessed a substantial erosion of its market share over the past decade. The company's stronghold on the Indian toothpaste market has weakened considerably, with its share dropping from a commanding 58.00% to 43.00% over a ten-year period.

Market Dynamics

This 15.00 percentage point decline represents a notable change in consumer preferences and heightened competition in India's oral care industry. The shift underscores the evolving landscape of the Indian fast-moving consumer goods (FMCG) sector, particularly in the oral care segment.

Implications for Colgate Palmolive

While Colgate Palmolive still maintains a significant presence in the market with a 43.00% share, the decline from its previous dominant position of 58.00% raises questions about the company's strategy and competitive edge in one of the world's largest consumer markets.

Competitive Landscape

The substantial decrease in Colgate's market share suggests that other players in the oral care segment have made inroads into the Indian market. This could be attributed to factors such as:

• Increased competition from both domestic and international brands
• Changing consumer preferences towards natural or ayurvedic oral care products
• Aggressive marketing and distribution strategies by competitors
• Potential pricing pressures in the market

Looking Ahead

As Colgate Palmolive grapples with this significant market share erosion, industry observers will be keenly watching the company's next moves. The company may need to reassess its product offerings, marketing strategies, and overall approach to the Indian market to adapt to changing consumer preferences.

The Indian oral care market continues to be a battleground for various players, and Colgate's journey over the next few years will be crucial in determining whether it can stem the tide of declining market share and reinforce its position in this highly competitive landscape.