Colgate-Palmolive India’s Q1FY26 results have triggered a range of reactions from brokerages, with target prices spanning from as low as ₹2,175 to as high as ₹3,135. While most firms have cited weak demand and margin pressures, some remain hopeful of a recovery in the second half of the fiscal year.
HSBC has maintained a Hold rating on Colgate and cut its target price to ₹2,600 per share. The brokerage noted that Q1FY26 was even weaker than expected, despite earlier guidance of a soft first half. EBITDA margins declined even as the company maintained control over advertising and promotion (A&P) expenses. While a gradual recovery is expected in H2FY26, HSBC remains cautious, citing limited structural growth potential.
Nomura has retained its Reduce rating with a target price of ₹2,350. It flagged that Q1 was below estimates, with a 3–4% year-on-year volume decline and an 11% drop in EBITDA. Nomura attributed the volume decline to weak demand and a high base. Despite some momentum from new product launches and premiumisation efforts, margins were pressured due to higher promotional activity and negative operating leverage.
Goldman Sachs maintained a Sell call and set a target of ₹2,300. It reported a 4% YoY decline in revenue, an 11% drop in gross EBITDA, and a 12% fall in PAT. Goldman noted that EBITDA declined despite reduced A&P spends, driven by lower gross margins. It has lowered its FY26 and FY27 estimates by 3–4%.
Citi also retained a Sell rating, cutting its target to ₹2,175 from ₹2,300. The brokerage said revenue and EBITDA declined in Q1, with management citing weak urban demand, strong competitive intensity, and a high base as key headwinds. Citi expects these challenges to continue into Q2, although it sees a gradual recovery in H2FY26.
In contrast, Nuvama remains optimistic and has reaffirmed a Buy rating with a target price of ₹3,135. Nuvama acknowledged that revenue and EBITDA declined due to subdued urban demand and a high base, with toothpaste volumes falling 2% YoY. Gross and EBITDA margins were affected by high promotional intensity and limited operating leverage. However, it expects a rebound in performance in the second half of FY26.
Disclaimer: The brokerage views expressed above are solely those of the respective firms. This article does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions.
