Colgate-Palmolive India Reports Q3FY26 Results with 1.4% Revenue Growth
Colgate-Palmolive (India) Limited reported Q3FY26 results with net sales of Rs. 1,473 crore, up 1.4% YoY. Net profit stood at Rs. 324 crore, growing 2.3% excluding exceptional items from new labour code implementation. The company maintained robust gross margins at 69.7%, improving 50 bps quarter-on-quarter, while accelerating premium segment investments and launching innovative products like Colgate Visible White Purple Serum.
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Colgate-Palmolive (India) Limited announced its unaudited financial results for the third quarter ended December 31, 2025, showing a return to growth momentum driven by improved performance across urban and rural channels. The company reported steady revenue growth while maintaining robust profitability despite regulatory headwinds.
Financial Performance Overview
The company delivered solid financial performance for the third quarter of FY26, with revenue growth supported by recovery in core portfolio and sustained premium segment performance.
| Metric | Q3 FY26 | Q3 FY25 | Growth (%) |
|---|---|---|---|
| Net Sales | Rs. 1,473 crore | Rs. 1,452 crore | +1.4% |
| Net Profit (reported) | Rs. 324 crore | Rs. 323 crore | +0.3% |
| Net Profit (excluding exceptional items) | Rs. 332 crore | Rs. 323 crore | +2.3% |
| Gross Margin | 69.7% | - | +50 bps QoQ |
| Earnings Per Share | Rs. 11.91 | Rs. 11.87 | +0.3% |
Operational Highlights
The quarter witnessed improved momentum across both urban and rural trade channels, indicating recovery following disruption from revised GST rate implementation. Domestic net sales grew by 2.2% year-on-year, while the premium segment continued to deliver strong double-digit growth.
Managing Director & CEO Prabha Narasimhan commented on the performance: "In the third quarter, our business saw a return to growth, driven by early positive signs in our core portfolio and sustained strong performance in the premium segment. Both urban and rural trade channels experienced improved momentum throughout the quarter."
Margin Performance and Cost Management
The company maintained robust gross margin profile through strict financial discipline via its funding the growth program. Q3 FY26 margin reached 69.7%, improving by 50 basis points compared to the trailing quarter. However, net profit growth was impacted by regulatory changes, including the new labour code implementation and inverted duty structure charges due to GST changes.
Product Innovation and Market Strategy
During the quarter, Colgate accelerated brand investments in the premium segment as part of its premiumisation strategy within the oral care category. The company successfully launched Colgate Visible White Purple Serum in Q3, marking a significant milestone in its "Oral Beauty" journey.
| Innovation Highlights | Details |
|---|---|
| New Product Launch | Colgate Visible White Purple Serum |
| Technology | Advanced color-correction technology |
| Market Access | 60g access pack of Visible White Purple toothpaste |
| Category Focus | Premium oral care segment |
The innovative whitening booster leverages advanced color-correction technology to neutralize yellow tones, providing consumers with instant, on-demand brightening effects. Additionally, the company introduced a 60g access pack of Visible White Purple toothpaste to make premium products more accessible.
Exceptional Items and Regulatory Impact
The company recorded exceptional expenses of Rs. 839 lakhs during the quarter due to the implementation of new labour codes notified by the Government of India on November 21, 2025. These codes consolidate existing labour laws, resulting in a one-time increase in employee benefit expenses recognized under exceptional items.
Nine-Month Performance
For the nine months ended December 31, 2025, total income stood at Rs. 4,512 crore compared to Rs. 4,697 crore in the corresponding period of the previous year. Net profit for the nine-month period was Rs. 972 crore compared to Rs. 1,082 crore in the previous year.
Outlook and Strategy
The company expects growth momentum to accelerate going forward, driven by an improving demand environment and intense focus on superior execution. The management remains committed to advancing premiumisation strategy while maintaining financial discipline through funding the growth initiatives.
Historical Stock Returns for Colgate Palmolive
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.94% | -0.49% | +1.21% | -4.22% | -21.15% | +35.07% |
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