Colgate-Palmolive India on Tuesday reported an 11.8% year-on-year (YoY) decline in its net profit to Rs 321 crore for the June quarter (Q1) of FY26, as compared to Rs 364 crore for the same period last year.
Net sales also fell 4.5% to Rs 1,421 crore in Q1, as compared to Rs 1,486 crore for the same period last year.
Margins contract
The company’s operating margin declined to 31.6% in the current quarter, compared to 34% in the corresponding quarter last year, indicating a contraction of 240 basis points. One basis point is one-hundredth of a percentage point.
Earnings before interest, tax, depreciation and amortisation (Ebitda) declined by 11% to Rs 453 crore in the June quarter, compared to Rs 508.34 crore in the corresponding period last year.
CEO on weak Q1
“Our Q1 results reflected persistent headwinds from tough operating conditions on account of subdued urban demand and elevated competition intensity. The current quarter performance is also influenced by a high base from the previous year,”Prabha Narasimhan, MD & CEO, Colgate-Palmolive, India, said.
She said that the company continued to work towards execution of its strategic priorities including category premiumisation. The company had also prioritised brand investment, she said.