Colgate Shares in Focus: GST transition drags Q2 results; Should you buy, hold or sell after 30% slide
Published on 24/10/2025 08:59 AM
Colgate Palmolive Shares Today: Colgate Palmolive India’s latest quarterly numbers have disappointed investors, with both profit and sales showing a sharp decline. The company reported a 17 per cent drop in net profit and a 6 per cent fall in revenue for the September quarter, triggering a wave of earnings downgrades from global brokerages.
Analysts pointed out that the oral care major has been struggling to find growth momentum for several quarters now. Even though lower raw material costs provided some cushion to margins, overall demand weakness and stiff competition weighed on the topline.
JP Morgan cut its rating to neutral from overweight and revised its price target to Rs 2,400 from Rs 2,625, noting that steady margins could not offset slower sales growth. Goldman Sachs kept its sell call and trimmed the target to Rs 2,200, while CLSA maintained a hold stance with a reduced target of Rs 2,130.
Nomura also stayed cautious, retaining a reduce rating and cutting its price estimate to Rs 2,200 from Rs 2,350. It flagged an 8.5 per cent year-on-year drop in volumes — worse than expected — and said the second half of FY26 may see only a mild recovery.
Not everyone was bearish, though. Jefferies continued to back the stock, keeping its buy rating and a target of Rs 2,700. The brokerage attributed the weak performance to temporary factors such as GST-related destocking and a high comparison base from last year. It added that Colgate’s premium product range continued to perform well.
Citi, however, remained on the other side of the fence, maintaining its sell view and lowering its target to Rs 2,100. The firm cited an intensely competitive environment and the temporary impact of destocking before GST rate changes. It expects a gradual improvement in sales once inventory levels stabilize and price adjustments flow through.
Overall, the Street remains divided on Colgate-Palmolive. While a few see room for recovery as the year progresses, most analysts believe the stock may stay rangebound in the near term unless volume growth returns.
Shares of Colgate Palmolive closed 1.74 per cent higher on Thursday at Rs 2300.
Senior Sub-editor at Zee Business English
shweta.shukla@India.com
Shweta Birendra Shukla is a journalist covering the stock market and corporate aff