Colgate shares surged around 6.5-7% after GST Council update allowed input tax credit on services at 18% effective November 1, benefiting margins

Fri 9 Oct 2026

Stock move today

6.5 percent

Portfolio shifted to lower GST

95 percent

FY26 margin benefit

80 basis points

Structural margin improvement potential

150 basis points

Estimated annual pre-tax benefit

50 to 100 crore rupees

Heard on business television between 09:45:00 - 09:48:00 IST.

• Colgate stock rallied as much as 6.5-7% in trade.
• Previously, 95% of Colgate's portfolio was shifted from 18% GST to 5% GST, but input tax credit on raw materials/services remained at 18%, causing losses from the inverted duty structure.
• From November 1, this input tax credit will now be available, benefiting items like ad spends, royalties and logistics.
• Nomura note estimated an 80 bps margin benefit for FY26 and up to 150 bps structural margin improvement potential overall.
• Estimated annual pre-tax benefit of 50-100 crore rupees, with 3-6% potential PAT impact in FY26; full year impact expected in FY28 rather than FY27.

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