Dabur India Q2 FY26 Update: FMCG Major Expects Demand Rebound After GST Rate Cuts; Shares Close in Red

Shares of Dabur India traded under pressure after the company issued its Q2 FY2025-26 business and demand update ahead of its financial results. The company is optimistic that recent GST reforms by the government, where the rates were reduced from 12%/18% to 5% on several FMCG categories, will boost consumption and affordability in both the urban and rural markets. Dabur expects consolidated revenue growth in mid-single digits for Q2 FY26, with operating profit growth in line with revenue.

Dabut India Q2 Update

According to the exchange filing shared by Dabur, "Around 85% of its product portfolio now falls under the 5% GST slab, which is expected to be a major positive for its India business. We at Dabur are committed to passing on the benefit of reduced GST rates to our consumers."

However, the September quarter saw a temporary disruption in trade as distributors and consumers deferred purchases to take advantage of the new pricing.

"This resulted in a short-term moderation in sales during the month of September and, consequently, in Q2FY26. Despite these headwinds, our non-GST impacted brands like Dabur Honey, Anmol Coconut Oil, Gulabari and Hajmola Zeera have performed well. Retail offtakes continued to be resilient, enabling us to sustain market share gains in 90%+ of our portfolio," the company further explained.

Segment-Wise Performance Expectations

In the Home & Personal Care segment, Dabur expects double-digit growth in its oral care brands like Dabur Red Toothpaste and Meswak. The skincare portfolio led by Gulabari and Oxy is likely to grow in high single digits, while haircare, especially Vatika shampoos, is expected to post high single-digit growth.

In the healthcare segment, key brands such as Dabur Honey, Honitus, Hajmola, and Health Juices are expected to achieve double-digit growth because of strong volume performance.

Within Foods and Beverages, the culinary business is expected to record double-digit growth, driven by oils and fats, while the premium 'Activ' juices and coconut water portfolio are likely to deliver 30%+ growth. However, overall beverage sales were affected by heavy rains and floods during July and August.

International and E-Commerce Growth

Dabur's international business saw healthy growth in key markets such as MENA, Turkey, Namaste, and Bangladesh, though Nepal operations were impacted by political unrest. The company expects mid-single-digit growth in both INR and constant currency terms from its overseas business.

Meanwhile, e-commerce and quick commerce channels continued to deliver double-digit growth, while modern trade maintained steady momentum, indicating robust digital and organised retail expansion.

Dabur India Q1 FY26 Result Recap

Dabur India reported a steady performance in the first quarter of FY26. The company's consolidated revenue from operations rose 1.7% YoY to Rs. 3,404.58 crore. While profit after tax increased by around 2.8% to Rs. 513.91 crore.
Earnings per share stood at Rs. 2.9, up 2.8% YoY. The company expanded its rural footprint to 133,000 villages, adding 63,000 direct outlets year-on-year to reach a total of 1.52 million outlets. Dabur's operating profit also rose 2% YoY, supported by market share gains across nearly 95% of Dabur's product portfolio, underscoring the company's ability to sustain growth despite cost headwinds.

Dabur Shares Today

At the end of Tuesday's trading session, Dabur India Ltd shares closed at Rs. 492.25, down Rs. 1.10 or 0.22% on the BSE.