Colgate‑Palmolive India shares fell 5% to ₹1,597.70 on Friday, October 23, reaching a 52‑week low after the company reported a margin slip for the quarter ended September 30, 2026 (Q2 FY27). The board also declared the first interim dividend of ₹24 per equity share of face value ₹1 each for FY27, with a total payout of ₹653 crore to be paid from November 19. The dividend announcement came alongside the earnings release, which highlighted a 4% rise in net profit to ₹342 crore from ₹327.5 crore year‑on‑year.

The personal‑care firm posted a net profit after tax of ₹342 crore for Q2 FY27, up 4% from the same period last year. Excluding one‑offs and exceptional items, net profit after tax grew 5.5% year‑on‑year, while revenue from operations jumped 13% to ₹1,728 crore from ₹1,535 crore YoY. Earnings before interest, taxes, depreciation & amortisation (EBITDA) increased 2% to ₹1,096 crore from ₹1,076 crore in the corresponding quarter of the previous fiscal year.

However, the EBITDA margin contracted to 63.4% in Q2 FY27 from 70.1% YoY, reflecting the impact of higher advertising spend. Jefferies analysts noted that advertising spending rose to around 19% of revenue, the highest level in multiple quarters, which weighed on margins. The new CEO, Manish Anandani, said the company expects robust growth supported by a science‑backed product portfolio and strategic advertising investments.

Anandani highlighted that the Toothpaste portfolio delivered high‑single‑digit volume expansion, led by the Premium Toothpaste range and strong performance in Colgate MaxFresh. He also mentioned that gross margin expanded by 40 basis points YoY to 69.6% in Q2, driven by disciplined cost savings and calibrated pricing actions. The company further stepped‑up investments in brand building and premiumisation throughout the quarter.

HSBC analysts reported that Q2 FY27 sales rose 12% YoY, with volumes growing at a high‑single‑digit rate, but sales were 1‑2% below HSBC’s estimates and consensus expectations. Advertising spending increased 40% YoY, which HSBC considered the right approach but also a key reason for the 8‑10% miss against its estimates. The analysts added that underlying growth remained tepid, with first‑half growth of 12% coming from a low base.

Goldman Sachs analysts noted that Colgate reported double‑digit growth in Q2 FY27, supported by a fragile base, but EBITDA margins fell short of expectations and decreased due to higher advertising expenditures. At 11:05 AM, Colgate‑Palmolive India shares were trading at ₹1,606.10 on the National Stock Exchange, down 4.68%, with a total market capitalisation of ₹43,765.21 crore.