HSBC has retained its Hold rating on Colgate-Palmolive India and lowered the target price to ₹2,600 per share, citing a softer-than-expected start to FY26. The revised estimate suggests limited upside from the current market price of ₹2,375.90.
The brokerage flagged that while Q4FY25 results had already indicated a weak first half of FY26, the company’s Q1 performance fell further below expectations. Notably, the EBITDA margin came under pressure despite tighter control on advertising and promotional (A&P) spending.
According to HSBC, the company expects a gradual recovery in the second half of the fiscal. However, it remains cautious on the overall structural growth potential, which it believes continues to be low.
Colgate’s performance will be closely monitored in the coming quarters for signs of a sustainable turnaround, but near-term headwinds persist.
Disclaimer: The brokerage views expressed above are those of HSBC. This article does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions.
