Citi has maintained its sell rating on Colgate-Palmolive (India) with a target price of ₹2,100 per share after the company reported a subdued Q2FY26 performance marked by revenue and EBITDA declines of around 6% year-on-year. The brokerage attributed the weakness to GST-related destocking and heightened competition in the oral care segment.
Citi said that despite a resilient premium product portfolio, overall growth was weighed down by a high base effect and increased promotional intensity across mass categories. The firm expects a gradual recovery in the second half of FY26 (H2FY26), supported by easier year-on-year comparables and benefits from low-unit pack (LUP) innovation.
While input costs have remained stable, the brokerage believes volume recovery will take time to reflect in earnings growth, given competitive pricing pressures. Citi remains cautious on near-term growth visibility but sees medium-term prospects improving as inventory levels normalise.
Disclaimer: The views and recommendations above are those of Citi. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
