Colgate Palmolive India Q2 profit rises 4 per cent as sales grow 12.2 per cent

MUMBAI: Colgate Palmolive India has something to smile about as its sales continue to brush aside the single-digit growth mark. The oral care major reported a 12.2 per cent year-on-year increase in net sales for the second quarter of FY27, while profit after tax rose to Rs 342 crore from Rs 328 crore a year earlier.

The company announced its financial results for the quarter ended 30 September 2026 on 22 October. Net sales increased to Rs 1,692 crore from Rs 1,507 crore in the corresponding quarter last year, marking the second consecutive quarter of double-digit topline growth. Excluding one-off and exceptional items, net profit after tax grew 5.5 per cent year on year, according to the company.

The board also declared a first interim dividend of Rs 24 per equity share with a face value of Re 1 for FY27. The total payout will amount to approximately Rs 653 crore, with payments scheduled to begin on 19 November 2026. Shareholders whose names appear in the company’s register as of the record date, 2 November 2026, will be eligible for the dividend.

The results show continued sales momentum, although the growth in reported profit was more modest than the increase in revenue. Net profit for the quarter stood at Rs 341.57 crore, compared with Rs 327.51 crore in the year-ago period, an increase of around 4.3 per cent.

Colgate Palmolive India’s profit before tax, excluding exceptional items, was Rs 460.22 crore, compared with Rs 442.28 crore in the corresponding quarter last year. Total income increased to Rs 1,727.50 crore from Rs 1,534.53 crore, according to the unaudited financial results.

For the first half of FY27, the company recorded net sales of Rs 3,282.13 crore, up from Rs 2,927.88 crore in the same period last year. Profit after tax increased to Rs 684.65 crore from Rs 648.13 crore, while profit before tax before exceptional items rose to Rs 925.75 crore from Rs 874.23 crore.

The company’s sales, net of goods and services tax, increased by 12.2 per cent in the September quarter and 12.1 per cent in the first half compared with the corresponding periods of the previous year.

Managing director and chief executive officer Manish Anandani attributed the performance to growth across brands and distribution channels. He said the toothpaste portfolio delivered high-single-digit volume expansion, led by the premium toothpaste range and strong performance from Colgate MaxFresh.

The company also reported that its gross margin expanded by 40 basis points year on year to 69.6 per cent in the quarter. Anandani said the business continued to manage commodity cost fluctuations through cost savings and calibrated pricing actions, while increasing investment in brand building and premiumisation.

Looking ahead, the company said it expects growth to be supported by its science-backed product portfolio, consumer-focused offerings and advertising investments.

Marketing activity remained a key part of its strategy during the quarter. Colgate said it partnered with ‘Kaun Banega Crorepati’, with Amitabh Bachchan delivering 100 unique sign-offs, one for each episode through the season, to encourage night-time brushing habits.

Other initiatives included expanding communication for Colgate Visible White under the ‘Beauty Secret’ positioning and partnering with athletes for Colgate Total. The company also introduced a Harry Potter-themed oral care range for children and adults, alongside a Bluey-themed toothpaste featuring a vacuum-locked pump dispenser.

The results announcement also brought changes to the company’s marketing leadership. Gunjit Jain, executive vice-president of marketing, will leave the role at the close of business on 30 November 2026 to pursue a professional opportunity outside the company. Jain’s resignation letter said he was grateful for his tenure of more than 18 years at Colgate Palmolive India.

Akash Parekh, currently senior director of marketing for Asia Pacific, will succeed Jain as executive vice-president of marketing from 1 December 2026. Parekh has been with Colgate Palmolive since 2009 and brings nearly 17 years of experience within the company across India, North America and Asia Pacific. He currently leads regional marketing strategies for the APAC division.

Parekh began his career with Nielsen in 2006 and holds an MBA in marketing from the Mumbai Educational Trust. He has also completed the Global Leadership Development Programme at Stanford University. The company said his experience spans brand strategy, commercial execution, market expansion and consumer insights.

Separately, the board appointed Ragini Gajaria as internal auditor with effect from 22 October 2026, following a recommendation from the audit committee. Gajaria joined the company on 5 August as head of the Continuous Improvement Group and Enterprise Risk Management. A chartered accountant with a bachelor’s degree in commerce, she previously served as senior manager for risk management and internal audit at Asian Paints and worked with Boston Consulting Group.

The board also approved the unaudited financial results for the quarter and half year ended 30 September 2026. The results were reviewed by the audit committee and approved by the board on 22 October.

In a separate governance matter, the company said shareholder approval for the appointment of Manish Anandani as managing director and CEO would be sought through a postal ballot. Friday, 23 October 2026, was set as the cut-off date for determining shareholders eligible to receive the notice electronically and vote.

Colgate Palmolive India operates primarily in oral care and personal care, with the company identifying personal care, including oral care, as its sole reportable business segment. Its latest results point to sustained revenue growth, higher first-half profit and continued investment in premium products and marketing, alongside a leadership transition in its marketing function.

With double-digit sales growth for a second consecutive quarter, a Rs 653 crore dividend payout and a new marketing chief set to take over in December, the company is looking to keep its growth momentum going into the second half of FY27.