Nomura has retained its Reduce rating on Colgate-Palmolive India and assigned a target price of ₹2,350 per share, implying a 1% downside from the current market price of ₹2,375.90.
The brokerage said Q1FY26 results came in below expectations, with volume declining 3–4% year-on-year and EBITDA falling 11% YoY. Nomura attributed the weak performance to sluggish demand trends and a high base effect that amplified the volume pressure.
While the company continues to focus on premiumisation through new product launches and innovations, operating margins remained under pressure. This was driven by elevated promotional activity and negative operating leverage during the quarter.
Nomura remains cautious on near-term growth and profitability given the ongoing demand challenges and intense competitive environment in the oral care segment.
Disclaimer: The brokerage views expressed above are those of Nomura. This article does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions.
