Colgate-Palmolive Shares Tumble 6% as Q4 FY25 Net Profit Drops 6.5%

On Thursday, May 22, 2025, Colgate-Palmolive (India) Ltd witnessed a sharp decline in its stock price, falling nearly 6% after the release of its Q4 FY25 earnings. The stock dropped as much as 5.88% intraday to ₹2,599 before trading slightly higher at ₹2,507, underperforming the broader Nifty 50 index, which was down 0.89% at the time.

This marks a significant slip of over 8% from its recent high of ₹2,747 earlier this month, and the stock is now down 6.5% year-to-date.

Weaker than Expected Financial Performance

The sell-off was triggered by weaker-than-expected earnings. Colgate-Palmolive’s net profit for Q4FY25 declined 6.5% year-on-year to ₹355 crore, compared to ₹380 crore in the same quarter last year.

Revenue from operations also dipped 1.9% to ₹1,462 crore from ₹1,490 crore in Q4FY24, signalling a slowdown in consumer demand and market challenges in the personal care space.

Profitability Pressures Evident

Operating performance also disappointed, with EBITDA falling 6.4% to ₹498.1 crore. The EBITDA margin contracted to 34.1% from 35.7% in the year-ago quarter, reflecting pressure on profitability due to rising costs and price sensitivity in the FMCG segment.

Stable Full-Year Results Offer Some Relief

Despite the weak quarter, the full-year performance remained relatively stable. Net profit for FY25 rose 8.55% to ₹1,436.81 crore, while revenue grew 6.29% to ₹5,999.20 crore.

The company also declared a second interim dividend of ₹27 per equity share, offering some relief to investors amid the short-term volatility.

Market Leadership Faces New Challenges

Colgate-Palmolive India, a subsidiary of Colgate-Palmolive USA, remains a market leader in oral care with its popular brands spanning toothpastes, toothbrushes, and mouthwashes. However, the latest results underscore the challenges the FMCG sector faces amid changing consumer behaviours, rising competition, and price sensitivity.

Read More: VA Tech Wabag Shares Soar 9% on Strong Q4 FY25 Results, Dividend Boost.

Conclusion

Colgate-Palmolive’s Q4 results reflect ongoing pressures in the consumer goods sector, including shifting demand patterns and margin challenges. The company continues to maintain its market presence, supported by a broad oral care portfolio and dividend payouts. Investors and market participants may monitor future earnings reports and broader industry trends for a clearer picture of performance going forward.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.