Colgate Palmolive (CLGT IN) – Q1FY27 Result Update – Positive surprise on volume, lags near term triggers – HOLD
Published on 29 Jul 2026
CLGT’s 1Q27 revenue grew 11.8% YoY to ₹16bn (PLe: ₹15.5bn), driven by healthy high-single-digit volume growth (~8.5%), profits were higher as full impact of input cost increase was not reflected in 1Q27. We raise our FY27/FY28 EPS estimates by 1.3%/1.4%, driven by 1) sustained traction in the premium portfolio, 2) calibrated price hikes to offset RM volatility and 3) cost-saving initiatives to support EBITDA margins despite elevated A&P spends. However, we believe some growth challenges to emerge on expected EL Nino impact on rural demand and full impact of input cost inflation from 2Q27.
We factor in ~5.5% volume growth over FY26-FY28 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 3) continued focus on innovation across price points. We estimate 9% EPS CAGR over FY26–28. We value CLGT at 38x March’28 EPS, with a target price of ₹2,242 (₹2214 earlier). Retain HOLD.
