Colgate-Palmolive (India) Limited: Model Update: Stepped up A&P investments to weigh on margin in FY27E despite DD revenue growth

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Colgate-Palmolive (India) Limited: Model Update: Stepped up A&P investments to weigh on margin in FY27E despite DD revenue growth

J P M O R G A N Asia Pacific Equity Research

31 July 2026

Colgate-Palmolive (India) Limited Neutral

COLG.NS, CLGT IN

Model Update: Stepped up A&P investments to weigh Price (30 Jul 26):Rs2,084.80

on margin in FY27E despite DD revenue growth Price Target (Jun-27):Rs2,250.00

We update our CLGT model following Q1 performance. Revenue was up 12% y/y, Consumer, Retail, Media

ACdriven by HSD volume growth and continued outperformance in the premium Latika Chopra, CFA

portfolio. We expect the near-term revenue growth trajectory to remain healthy, (91-22) 6157-3584

supported by pricing growth (LSD-MSD, per JPMe), category premiumization latika.chopra@jpmorgan.com

initiatives, and a favorable base. Despite ongoing cost-saving initiatives, EBITDA Himanshu Singh

margin expansion is likely to remain capped by sustained higher brand (91-22) 6157-3610

investments, an inverted duty structure-related charge from GST changes (100- himanshu.x6.singh@jpmorgan.com

150bps impact per JPMe) impact and inflationary COGS as low-cost inventory Saransh S Gokhale

fades from Q2. While valuations appear attractive, with the stock trading below its (91-22) 6157 3578

saransh.gokhale@jpmchase.com

5-year and 10-year averages, we expect the stock to trade range-bound given J.P. Morgan India Private Limited, J.P. Morgan

limited scope for earnings upgrades. We tweak our earnings estimates, and our TP Tower, Santacruz(E), Mumbai - 400098, SEBI

Registration: INH000001873, (91-22) 6157-3000.

is unchanged at Rs 2,250.

• Revenue outlook. Domestic revenue grew 12%, aided by broad-based growth Style Exposure

across both premium and core portfolios. The broader consumption