Colgate-Palmolive Q3 profit beats estimates; margin dips amid regulatory impact

Colgate-Palmolive (India) Ltd reported December-quarter earnings marginally ahead of Street estimates, with profit and revenue showing modest year-on-year growth, even as margins softened due to regulatory headwinds.

The fast-moving consumer goods major posted a net profit of ₹323.8 crore for the quarter ended December 2025, slightly above the CNBC-TV18 poll estimate of ₹318 crore and marginally higher than ₹322.8 crore a year ago.

Revenue rose 2.1% year-on-year to ₹1,492 crore, compared with the Street estimate of ₹1,465 crore.

EBITDA stood at ₹448.2 crore, broadly in line with expectations, while EBITDA margin came in at 30%, lower than 31.1% a year earlier and marginally below the Street’s forecast of 30.4%.

The company said profitability was impacted by regulatory changes, including the introduction of the new labour code and an inverted duty structure-related charge following GST revisions.

Managing Director and CEO Prabha Narasimhan said the company saw a return to growth during the quarter, driven by early recovery in the core portfolio and continued strength in the premium segment. “Both urban and rural trade channels experienced improved momentum throughout the quarter,” she said, adding that the disruption from revised GST rates had begun to ease.

She noted that Colgate accelerated brand investments to support premiumisation in oral care and maintained a strong gross margin profile through disciplined cost management. Gross margin for Q3 FY26 stood at 69.7%, up 50 basis points sequentially.

During the quarter, Colgate launched the Visible White Purple Serum and expanded access to its premium teeth-whitening range with smaller pack sizes.

Ahead of the earnings announcement, shares of Colgate-Palmolive (India) ended at ₹2,111.85 on the BSE, down 1.94%.