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Colgate-Palmolive Q3 Results: Adjusted Net Profit Up 2.3%, Sales Grow 1.4% to Rs 1,473 Cr
Colgate-Palmolive India reported a modest 1.4% YoY increase in sales to Rs 1,473 crore for the quarter ended December 2025. Adjusted net profit grew by 2.3% YoY to Rs 324 crore, after accounting for a one-time exceptional charge of Rs 8.39 crore related to the new Labour Code. The company maintained a strong gross margin of 69.7%, benefiting from its 'funding the growth' program and premiumisation strategy. Management noted a recovery in both urban and rural channels following previous GST-related disruptions.
Key Highlights
Net Sales grew 1.4% YoY to Rs 1,473 crore, with domestic sales growth at 2.2%
Adjusted Net Profit (excluding exceptional items) grew 2.3% YoY to Rs 324 crore
Gross margins improved to 69.7%, up 50 basis points sequentially from the previous quarter
Exceptional item of Rs 8.39 crore recognized due to the implementation of the New Labour Code
Premium segment continues to grow at strong double digits, supported by new product launches
💼 Action for Investors
The stock remains a defensive play with stable margins, but revenue growth is currently sluggish. Investors should monitor if the management's expectation of accelerating momentum in rural and urban channels materializes in the coming quarters.
Colgate-Palmolive India Receives INR 267.64 Crore Income Tax Demand
Colgate-Palmolive (India) Limited has received an Assessment Order for FY 2021-22 (AY 2022-23) from the Income Tax Department. The order includes a demand notice of INR 267.64 Crore, primarily due to transfer pricing adjustments and the disallowance of certain business expenses. The company has clarified that there is no immediate impact on its financials or operations. COLPAL intends to contest the demand by filing an appeal before the Income Tax Appellate Tribunal (ITAT).
Key Highlights
Income Tax demand of INR 267.64 Crore raised for FY 2021-22
Demand stems from transfer pricing adjustments and expense disallowances
Company to file an appeal before the Income Tax Appellate Tribunal (ITAT)
Management confirms no immediate impact on financials or operations
Order received on December 24, 2025, under section 143(3) of the ITA
💼 Action for Investors
Investors should monitor the progress of the appeal at the ITAT level as it represents a significant contingent liability, though such tax disputes are common for large MNCs.