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Colgate sees margins pressured as ad spending jumps in Q1FY27
Ebitda rose 6.7% year-on-year to ₹483 crore, but margin fell 144 bps to 30.1% as advertising expenses climbed 34% to ₹252 crore.
Colgate-Palmolive (India) Ltd reported total operating revenue growth of 11.8% year-on-year in the June quarter, with volume growth estimated in the high single digits, according to LiveMint Markets.
The company highlighted strong performance in premium toothpaste and sustained growth in its core portfolio, but investors appeared cautious, with the stock down 2% since results were declared.
Ebitda increased 6.7% year-on-year to ₹483 crore, while its margin contracted by 144 basis points to 30.1%, mainly due to advertising expenses rising 34% to ₹252 crore.
LiveMint Markets also reports that Colgate said gross margin expanded by 104 bps to 70% on cost-saving initiatives, and it plans to manage its margin profile through additional cost-saving and calibrated pricing amid commodity price volatility tied to geopolitical uncertainties.