Oral care major Colgate-Palmolive India is sharpening its focus on premiumisation as urban markets show early signs of recovery, industry executives in the know said. At the same time, the consumer goods company is tapping regional leaders such as Colgate Active Salt—particularly strong in the south and east—and on GST-led price cuts after the oral-care tax rate dropped to 5% from 18%, to support volumes at the lower end of the market.
An email sent to the company didn’t elicit any response till the time of going to press. But the company is said to be working on a two-pronged strategy to improve sales, which includes targeting more premium launches at the top end and turning to brands such as Colgate Active Salt toothpaste at the mass end to reinforce its leadership.
What do experts say?
Colgate, which remains the leader in India’s Rs 16,500-crore toothpaste market, has seen share slip to around 43% from 46% two years ago. Rival Dabur has seen market share grow from levels of about 13-14% to 15% now, while Hindustan Unilever (HUL) has a share of about 15-16%, according to industry sources.
Colgate Active Salt is the leader in markets such as Tamil Nadu, where the company has successfully leveraged the benefits of salt ingrained in local oral care habits, experts said. This brand was relaunched last year and the company is likely to drive further innovation and brand-building in this segment, industry sources said. At the premium end, the firm recently launched a new whitening serum under its Visible White Purple oral care brand for premium users, as it increases its attention on its whitening portfolio in urban markets.
What did the company say?
Colgate’s latest moves come as the company struggles with revenue decline for three straight quarters. Topline dropped 6.3% in Q2FY26 (to Rs 1,507 crore) after falling 4.4% in Q1FY26 and 1.9% in Q4FY25, analysts tracking the company said.
Ebitda margins in Q2, on the other hand, was flat year-on-year at 30.1% amid a tight control on costs and benign raw material prices. Sequentially, though, there was a decline. In the last three quarters, operating margins have slipped from 33.6% in Q4 to 30.9% in Q1 and 30.1% in Q2, analysts at brokerage Elara Capital said, amid competitive intensity and the need to maintain brand visibility.
Following its September-quarter results last month, Prabha Narasimhan, MD & CEO, Colgate-Palmolive India, said the company expected a gradual recovery in performance in the second half of FY26. Analysts at JM Financial say that the company is likely to gain from the GST cuts in oral care and a low base in the second half of the year. In the first half of FY26, the company had to contend with a high base as it had reported double-digit net sales growth in the year-ago period, the brokerage said.
Narasimhan said that the company would also maintain its margin profile in an evolving market in the second half of the year.
“Our margin profile remains resilient driven by strong focus on execution of our Funding the Growth program. Despite topline headwinds, we remain committed to our long-term strategic goals and continue to prioritize brand investments,” she said.