Colgate Palmolive India's revenue for Q2FY25 increased by 10.1% YoY to INR 16,191 million, which was in line with estimates. The growth was driven by high single-digit volume increases.

However, EBITDA only rose by 3.2% YoY to INR 4,974 million, falling short of expectations due to higher operating expenses. This resulted in a decrease in EBITDA margin by 206 basis points YoY to 30.7%. Net profit for the quarter increased by 16.2% YoY to INR 3,951 million, which was largely in line with forecasts.

The Board declared a first interim dividend of INR 24 per share for FY24-25E. Analysts have adjusted their FY25E and FY26E adjusted EPS estimates downward by 3.0% and 6.0%, respectively, citing subdued demand and elevated advertising spending. The target price for Colgate-Palmolive shares has been revised to INR 3,067, down from INR 3,265, maintaining a "REDUCE" rating.