Colgate-Palmolive (India) (500830) Q4 25/26 earnings summary

Executive summary

• Q4 FY26 net sales grew 9% year-over-year to INR 1,583 crore, with domestic growth at 9.2% and broad-based gains across core and premium portfolios.

• Full-year FY26 sales were flat at INR 5,984 crore, but H2 saw a >5% uptick; net profit after tax was INR 1,325 crore, down from INR 1,437 crore, impacted by GST-related charges and lower interest on tax refunds.

• Premiumization and brand investments accelerated, especially in premium toothpaste and personal care, with premium contribution up 35% over two years.

• Market share gains in both core and premium segments, supported by strong brand health, innovation, and consumer engagement.

• Strong foundation established for consistent long-term growth, leveraging brand strength and innovation.

Financial highlights

• Q4 FY26 gross margin at 69.6%, EBITDA margin at 32.2%, and NPAT at INR 353 crore; full-year EBITDA margin at 31.2%.

• Brand investments up 10% YoY in Q4, focused on premium brands; Q4 spend was INR 199 crore (12.6% of sales), FY26 spend INR 819 crore (13.7% of sales).

• Cash flow improved to INR 1,806 crore; cash and cash equivalents at year-end INR 1,42,604 lakh.

• Dividend payout remains near 100% of NPAT, with total FY26 dividend at INR 48 per share.

• Exceptional items in FY26 included INR 2,497 lakh for severance and organizational changes.

Outlook and guidance

• Expect continued balanced growth between volume and pricing, with premium mix contributing more and ongoing investments in premium business delivering growth 3x the overall company rate.

• Gross margins expected to remain stable; EBITDA margin will depend on advertising levels.

• Low single-digit price increases planned in response to cost inflation.

• Management confident of sustaining growth momentum, focusing on category consumption and premiumization.

• Company actively monitoring geopolitical developments and commodity price volatility.