“Our focus continues to be to build category consumption and therefore drive volume on our core, driving premiumisation,” said chief executive Prabha Narasimhan at its earnings call on Friday.
The maker of Colgate toothpaste said contribution from premium products rose 35% over the last two years, growing six times the overall toothpaste category growth as consumers increasingly shift to higher-value oral care offerings.
The company is also stepping up investments behind premium brands such as Colgate Total and Visible White after seeing stronger consumer response to higher advertising spends.
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“We are seeing significant elasticity on stepped up investment, and we intend to continue to step up investment to further drive growth,” Narasimhan said.
Colgate-Palmolive India reported a 9% rise in fourth-quarter revenue to ₹1,583 crore, marking its strongest growth acceleration in several quarters after a muted FY25, and a sluggish first half weighed down by weak urban demand, pricing disruptions following GST cuts, and elevated competitive intensity.For the March quarter, the company’s net profit declined to ₹353 crore from ₹355 crore a year earlier, while advertising spends rose to ₹199 crore from ₹181 crore as the company stepped up investments behind brands and premium products.
The company said growth momentum improved sharply in the second half of FY26, with urban demand conditions beginning to recover after prolonged weakness at the lower end of the consumption pyramid.
“Urban markets are now beginning to pick up in terms of growth, while there is a slight slowdown in rural areas. The two of them are beginning to converge,” she said.
The company said e-commerce and quick commerce are significant contributors to growth and profitability, particularly for premium products, and now account for about 10% of overall business.
“As e-commerce grows, we tend to do better and better, especially on our premium portfolio,” said Narasimhan, describing digital channels as “growth accretive, margin accretive, share accretive and premiumisation accretive.”