File pic: Prabha Narasimhan, Managing Director and Chief Executive Officer, Colgate-Palmolive

Colgate-Palmolive (India) on Wednesday reported a 7 per cent year-on-year rise in consolidated net profit to ₹343.08 crore for the first quarter of FY27 from ₹320.62 crore a year earlier, while consolidated revenue from operations increased 11.8 per cent to ₹1,603.30 crore from ₹1,434.06 crore. The oral-care maker said high-single-digit toothpaste volume growth, premium products and broad-based domestic demand drove the performance, signalling continued momentum in its core business.

Colgate-Palmolive (India) on Wednesday reported a stronger-than-expected June-quarter performance, with high-single-digit toothpaste volume growth and premium products helping lift consolidated net profit 7 per cent and revenue from operations 11.8 per cent. The company expanded gross margins through productivity gains, but stepped up advertising and brand investments to sustain long-term growth.

Attributable net profit grew more slowly than sales because Colgate reinvested much of its gross-margin gain in brand building and premiumisation. Although net sales rose 12 per cent and gross margin expanded 110 basis points to 69.7 per cent, advertising expenditure jumped 33.7 per cent, or ₹63.45 crore, while total expenses grew 13.8 per cent, faster than sales.

Gross margin expanded 110 basis points to 69.7 per cent under the company’s ‘Funding the Growth’ programme. However, Colgate reinvested much of these productivity gains into brand building and innovation, with advertising and promotional expenditure rising 33.7 per cent year-on-year to ₹251.86 crore from ₹188.41 crore. As a result, the EBITDA margin softened to 30.1 per cent from 31.6 per cent despite the improvement in gross margins.

“Our toothpaste portfolio achieved robust, high-single-digit volume growth, driven by premium products and sustained growth in the core portfolio,” Managing Director and Chief Executive Officer Prabha Narasimhan said. She added that the domestic business delivered broad-based double-digit growth during the quarter.

Reported net profit included ₹3.34 crore of severance and restructuring costs. Excluding these exceptional items, the company said underlying profit grew about 11 per cent year-on-year.

Mayank Jain, Market Analyst at Share.Market by PhonePe, said the quarter reflected resilient revenue growth alongside strategic reinvestment into brand equity. “Operational efficiencies expanded gross margins, allowing the company to meaningfully step up advertising while sustaining earnings growth. The results also reinforce the resilience of Colgate’s premiumisation strategy despite a volatile consumption environment,” he said.

Consumption strategy gains traction

The June-quarter performance also provides early evidence that Colgate’s long-term consumption-led growth strategy is beginning to gain traction. With toothpaste penetration already close to universal in India, the company has identified higher usage among existing consumers, faster toothbrush replacement and premium oral-care products as its next growth drivers rather than relying on penetration gains alone.

According to the company’s FY26 annual report, around 80 per cent of urban Indians do not brush at night, while 55 per cent of rural consumers do not brush daily. Toothbrushes are replaced only once every six months in urban India and every 15 months in rural markets. Whitening toothpaste penetration also remains significantly below developed markets, highlighting the opportunity to drive premiumisation and higher consumption.

The latest quarter’s high-single-digit toothpaste volume growth, together with broad-based domestic growth, suggests that strategy is beginning to translate into underlying demand rather than being driven primarily by pricing or product mix.

Rather than pursuing large capacity additions, Colgate continues to focus on productivity-led investments through its ‘Funding the Growth’ programme, using cost savings to fund advertising, innovation and premium product development.

Looking ahead, Narasimhan said geopolitical uncertainty and commodity-price volatility remain key risks. The company expects to protect margins through productivity initiatives and calibrated pricing while continuing to invest behind its brands

Published on July 29, 2026