Colgate margin rebounds sequentially, but profit slips year on year
Expenses grew faster than revenue over Q4FY25, while the stock's five-day decline was larger than its usual post-results move.
Filed 22 May 2026, 16:53 IST · after market close · Colgate-Palmolive (India) Ltd (COLPAL)
Key takeaways
- Standalone operating margin recovered 2.20 percentage points sequentially to 31.94%, but remained 2.11 percentage points below Q4FY25.
- Revenue grew 9.08% year on year while expenses rose 12.57%, leaving net profit down 0.47% and EPS down 0.46%.
- The stock fell 7.33% five sessions after the results, a larger move than its 3.55% median post-results swing.
Price around the results
Q4 growth did not translate into higher profit
Colgate-Palmolive (India) reported standalone revenue growth of 9.08% year on year in Q4FY26, but operating profit rose only 2.33%. Expenses increased 12.57%, which pushed profit before tax down 0.75% and net profit down 0.47%. Other income contributed just 0.06% of pre-tax profit, so reported earnings were not materially supported by non-operating income.
Sequential margin recovery breaks the recent slide
Operating margin improved 2.20 percentage points sequentially because revenue grew 7.35% while expenses grew 3.99%. This ended three consecutive quarters of margin decline from 34.05% in Q4FY25 to 29.74% in Q3FY26, although the current margin remains 2.11 percentage points below last year. The tax rate fell 0.21 percentage points year on year, but that was not enough to offset the cost pressure.
Colgate remained well above the reported FMCG peer median
Colgate's 31.94% operating margin was 15.19 percentage points above the 16.75% median among 26 Fast Moving Consumer Goods peers that had reported the same quarter. The comparison supports the view that the margin remains high relative to the sector, even after its year-on-year contraction.
Management points to premiumisation and wider execution
Management said it is accelerating premiumisation investments and executing a revenue growth management strategy, including grammage upsizing in Rs. 10 packs to expand penetration across price points. The company said it plans to double planogram changeovers in 2026 and is building an AI transformation programme around effectiveness, efficiency and capability. These initiatives sit alongside management's reported Q4FY26 acceleration in net sales growth.
The market reaction was weaker than Colgate's usual pattern
The stock declined 2.78% on the first session after the results and 7.33% after five sessions. Its history after eight results shows three positive and five negative reactions, with a median absolute move of 3.55%, making the five-session fall larger than usual for the stock. The results were filed after market close on 22 May 2026.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,595 cr | ₹1,486 cr | +7.35% | +9.08% |
| Other income | ₹0 cr | ₹31 cr | -99.06% | -98.48% |
| Expenses | ₹1,086 cr | ₹1,044 cr | +3.99% | +12.57% |
| Operating profit | ₹510 cr | ₹442 cr | +15.29% | +2.33% |
| Operating margin (%) | 31.94% | 29.74% | — | — |
| Interest | ₹1 cr | ₹1 cr | -16.49% | -25.00% |
| Depreciation | ₹35 cr | ₹36 cr | -3.23% | -8.57% |
| Profit before tax | ₹474 cr | ₹436 cr | +8.80% | -0.75% |
| Tax | ₹121 cr | ₹112 cr | +7.93% | -1.56% |
| Net profit | ₹353 cr | ₹324 cr | +9.10% | -0.47% |
| EPS (₹) | ₹12.99 | ₹11.91 | +9.07% | -0.46% |
Operating margin of 31.94% compares with a Fast Moving Consumer Goods sector median of 16.75% across 26 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.78% | -4.09% |
| Next session | -3.70% | — |
| 5 sessions | -7.33% | -6.34% |
| 15 sessions | -2.78% | — |
| 30 sessions | -6.34% | — |
Volume on the results session was 4.21× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Net sales growth accelerated in the fourth quarter of FY26.
Guidance & outlook
- The company plans to double planogram changeovers in 2026.
- The company is accelerating premiumisation investments to deliver competitive growth.
New initiatives
- The company is building an AI transformation programme around effectiveness, efficiency and capability.
- The company is executing a revenue growth management strategy.
- The company is using grammage upsizing in Rs. 10 packs to drive penetration in price points.
Competition
- Colgate Strong Teeth provides 8.5 times stronger cavity protection than another commonly available toothpaste.
What to watch
- Whether standalone operating margin holds above 31.94% after the 2.20-percentage-point sequential recovery.
- Whether expenses grow more slowly than revenue, reversing the year-on-year gap of 12.57% versus 9.08%.
- Progress against management's stated plan to double planogram changeovers in 2026.