Colgate India margin slips to 30.12% as costs outpace sales
Standalone revenue rose +11.80% YoY, but expenses grew +14.15%, while operating margin fell 1.44 percentage points.
Filed 29 Jul 2026, 12:19 IST · Colgate-Palmolive (India) Ltd (COLPAL)
Key takeaways
- Standalone operating margin fell 1.44 percentage points YoY to 30.12% as expenses grew +14.15% against revenue growth of +11.80%.
- Standalone net profit rose +7.01% YoY, trailing revenue growth, while the tax rate was unchanged at 25.77%.
- Colgate's 30.12% operating margin was 13.97 percentage points above the 16.15% median for 15 FMCG peers.
Price around the results
Profit growth lagged revenue in standalone Q1FY27
Colgate-Palmolive (India) reported standalone revenue growth of +11.80% YoY, but net profit increased only +7.01%. The weaker profit conversion reflects expenses rising faster than sales. Sequentially, revenue grew +0.50% while net profit declined -2.90%, indicating softer momentum after Q4FY26.
Faster cost growth drove the margin contraction
Expenses grew +14.15% YoY against revenue growth of +11.80%, narrowing operating margin by 1.44 percentage points. The pressure intensified sequentially: expenses rose +3.19% while revenue increased +0.50%, cutting margin by 1.82 percentage points. Interest rose +27.16% QoQ and depreciation increased +11.77%, adding to the sequential pressure. Other income contributed 4.21% of pre-tax profit, while the unchanged YoY tax rate of 25.77% provided no tax-related lift.
Margin remains ahead of peers but below the recent peak
The 30.12% margin followed a one-quarter recovery to 31.94% in Q4FY26, so Q1FY27 marks a renewed decline rather than a third straight quarterly fall. It remains below the 34.05% recorded in Q4FY25. Colgate's margin was 13.97 percentage points above the 16.15% median among 15 FMCG peers that had reported the quarter.
Results-day response is not yet recorded
Across the last eight results, the stock rose three times and fell five times, with a median absolute move of 2.78%. The current filing has no recorded market reaction yet, so the historical pattern is the available context for this quarter.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,603 cr | ₹1,595 cr | +0.50% | +11.80% |
| Other income | ₹19 cr | ₹0 cr | +6610.34% | +8.47% |
| Expenses | ₹1,120 cr | ₹1,086 cr | +3.19% | +14.15% |
| Operating profit | ₹483 cr | ₹510 cr | -5.23% | +6.72% |
| Operating margin (%) | 30.12% | 31.94% | — | — |
| Interest | ₹1 cr | ₹1 cr | +27.16% | +0.98% |
| Depreciation | ₹39 cr | ₹35 cr | +11.77% | +4.45% |
| Profit before tax | ₹462 cr | ₹474 cr | -2.50% | +7.00% |
| Tax | ₹119 cr | ₹121 cr | -1.33% | +6.99% |
| Net profit | ₹343 cr | ₹353 cr | -2.90% | +7.01% |
| EPS (₹) | ₹12.61 | ₹12.99 | -2.93% | +6.96% |
Operating margin of 30.12% compares with a Fast Moving Consumer Goods sector median of 16.15% across 15 peers that have reported Q1FY27.
What to watch
- Whether standalone operating margin recovers from 30.12% after Q4FY26's 31.94%.
- Whether expenses continue to grow faster than revenue after +14.15% YoY versus +11.80%.
- Whether other income remains near its current 4.21% share of pre-tax profit.