Agency News
Why advertising agencies can no longer afford single-sector dependence
Colgate-Palmolive India Ltd on Thursday reported a decline in profit, revenue, and advertising expenditure for the second quarter of FY26, citing temporary market disruptions caused by the recent GST rate revision.
The oral care major posted a net profit of Rs 328 crore, down 17% year-on-year from Rs 395 crore in Q2 FY25. Total income fell to Rs 1,534.5 crore, compared to Rs 1,695 crore in the same period last year, while net sales declined to Rs 1,507 crore from Rs 1,609 crore.
The company also made notable cuts in total expenses, including advertising. Total expenses for the quarter stood at Rs 1,092 crore, with ad spends at Rs 225 crore, down from Rs 242 crore in Q2 FY25.
Prabha Narasimhan, Managing Director & CEO, attributed the decline to a transitory disruption at distributors and retailers across channels following the GST rate revision, which reduced taxes on Colgate’s entire oral care portfolio from 18% to 5%.
“Despite topline headwinds, we remain committed to our long-term strategic goals and continue to prioritize brand investments. Our premium portfolio continues to grow strongly, led by Colgate Visible White Purple,” Narasimhan said.
The company also declared a first interim dividend of Rs 24 per equity share for FY26, amounting to a total payout of Rs 652.8 crore. The dividend will be distributed from November 19, 2025, to shareholders on record as of November 3, 2025.
Despite being the original architects of global brands, advertising holding companies are collapsing in market value because they still sell human hours while the world now rewards scalable, self-learning systems.