Colgate’s ad spends up 34% in Q1FY27

Colgate-Palmolive India stepped up its advertising investments in the first quarter of FY27, signalling growing confidence in its premiumisation strategy as stronger margins and double-digit sales growth gave the oral care major more room to invest behind its brands. Even as geopolitical uncertainty and commodity price volatility continue to weigh on consumer goods companies, the maker of Colgate toothpaste chose to increase marketing spends to sustain demand and strengthen its leadership in the category.

The company's advertising expenditure rose 33.7 per cent year-on-year to ₹251.9 crore during the quarter ended June 30, 2026, from ₹188.4 crore in the corresponding quarter last year. This outpaced its 12 per cent increase in net sales, which reached ₹1,591 crore, highlighting that brand investment remains central to Colgate's growth strategy rather than an expense to be trimmed.

The FMCG company reported total income of ₹1,626.1 crore, compared with ₹1,452 crore a year ago. Total expenses increased to ₹1,160.6 crore from ₹1,020.1 crore, driven partly by higher advertising investments, employee costs and material expenses. Profit before tax stood at ₹462.2 crore, while net profit increased 7 per cent to ₹343.1 crore, compared with ₹320.6 crore in the year-ago period. Earnings per share improved to ₹12.61 from ₹11.79 a year earlier.

The increase in advertising comes as Colgate continues shifting its portfolio towards higher-value products while defending its market leadership in India's oral care segment. The company's premium toothpaste range, premium toothbrush portfolio and seasonal campaigns received greater marketing support during the quarter, reflecting a broader industry trend where FMCG companies are increasingly using advertising to drive premiumisation instead of relying solely on distribution or price-led growth.

Prabha Narasimhan, Managing Director and CEO, Colgate-Palmolive India, said the company continued to witness broad-based momentum across its portfolio. "Our toothpaste portfolio achieved robust, high-single digit volume growth, driven by stellar performance in Premium toothpaste, alongside a sustained growth in our Core portfolio."

She added that stronger profitability enabled the company to invest further in building its brands. "We continue to maintain a healthy margin profile led by consistent cost savings from our Funding the Growth initiatives and strict financial discipline. Gross margin reached 69.7% in Q1 FY27, representing a year-on-year increase of 110 basis points. We leveraged these strong margins to increase our focused investments in brand building and category premiumisation throughout the quarter. Moving forward, we expect to grow sustainably fuelled by our best in class science backed products, supported by continued investment in advertising."

Despite macroeconomic challenges, the company said it remains focused on protecting profitability while continuing to invest in innovation and marketing. It noted that geopolitical developments and commodity price volatility remain key external risks, but expects disciplined cost management to support future investments.

Innovation remained another major focus during the quarter. Colgate expanded its premium portfolio with the launch of Colgate MaxFresh Berry Blast, featuring its proprietary Ultrafreeze technology, introduced the Colgate Total Active Prevention Foaming Clean Toothbrush, and rolled out a summer campaign for Colgate MaxFresh Peppermint Ice, positioning it as a cooling toothpaste for the summer season. These launches were backed by increased marketing investments aimed at strengthening premium consumer engagement.

From a financial perspective, sales excluding GST increased 12 per cent year-on-year, while revenue from operations reached ₹1,603.3 crore, including other operating income. Advertising accounted for one of the largest increases within operating expenses, rising by more than ₹63 crore compared with the same period last year. The company also reported an exceptional expense of ₹3.34 crore related to organisational changes during the quarter.