Nomura has maintained its reduce rating on Colgate-Palmolive (India) with a target price of ₹2,200 per share after the company reported another weak quarter, with Q2FY26 volume down 8.5% year-on-year and sales declining 6.3%.
The brokerage said margins remained stable as lower raw material costs supported gross margin expansion; however, operating margins were constrained due to negative operating leverage stemming from muted volumes. Nomura expects only a minor recovery in the second half of FY26, given the ongoing competitive intensity and subdued demand in mass oral care categories.
The firm highlighted that while premium products continue to hold steady, mid-tier and entry-level products have witnessed greater pricing pressure. Nomura believes earnings recovery will remain gradual as the company works through inventory normalisation and distribution realignment following the GST transition.
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