Colgate Palmolive (CLGT IN) – Q4FY26 Result Update – Volumes turn positive, structural headwinds sustain – HOLD
Published on 22 May 2026
CLGT is facing input cost pressures in key inputs, it is taking price increase (Ist since GST reduction) to ward off inflationary impact. CLGT is aiming up to mid-single volume growth, GM might expand but higher ad-spends will prevent any EBIDTA margin expansion. We factor in mid-single digit volume growth led by (1) strengthening core toothpaste franchise (2) premiumization (contribution in sales mix up 35% in 2 years) through science-backed innovations within oral care and (3) sustained market share despite increasing competition from smaller D2C brands. We estimate 8.3% EPS CAGR over FY26–28. We value CLGT at 38x March’28 EPS, with a target price of ₹2,214 (₹2174 earlier). The stock lacks triggers, although downside seems limited. Retain HOLD.
