Colgate-Palmolive Q2 results: PAT down 17% YoY, revenue down 6% due to GST transition. Check dividends

FMCG giant Colgate-Palmolive (India) reported a 17% decline in net profit in the September quarter at Rs 328 crore, compared to Rs 395 crore in the same period a year ago. The company’s operating revenue in the quarter under review stood at Rs 1,507 crore, down 6.3% from Rs 1,609 crore reported in Q2FY25. Both sales and profits took a hit when the Goods and Services Tax (GST) rates on the company’s entire oral care portfolio were reduced from 18% to 5%.

The company said in its filing to the stock exchanges that profit fell 7.2% when excluding the one-time impact of interest on base year tax refunds.

The company also announced first interim dividend of Rs 24 per equity share for the financial year 2025-26. The interim dividend will be paid on November 19, with a record date of November 3.

Colgate-Palmolive’s profit after tax (PAT) rose 2.1% on a sequential basis from Rs 321 crore, while revenue rose 6.1% quarter-on-quarter compared to Rs 1,421 crore for the quarter ended June 30, 2025.

Commenting on the company’s quarterly performance, Managing Director & CEO Prabha Narasimhan said: “During the quarter, the GST rates for our entire oral care portfolio were reduced from 18% to 5%. We welcome this move by the government as this is a timely step in increasing consumer confidence while recognizing oral health as a growing priority. We have worked closely with all our customers to pass on lower prices to consumers from the effective date,” she said.

The MD & CEO acknowledged the difficulties in the operating environment during the second quarter. She said the current performance also reflects the temporary disruption to distributors and retailers across channels caused by the GST rate revision. Also Read: HUL Q2 Results: Cons PAT rises 4% YoY to Rs 2,685 crore; revenue up 2%”Our first half performance shows a high base of double-digit net revenue growth in the base period, and we expect a gradual recovery in performance in the second half. Our margin profile remains resilient, driven by a strong focus on executing our Funding The Growth program. Despite revenue headwinds, we remain committed to our long-term strategic objectives and we continue to prioritize brand investments. The premium portfolio continued to maintain strong growth momentum led by Colgate Visible White Purple, our advanced whitening toothpaste,” she added.

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