Dabur India Ltd. saw its shares rise by 4% in early trading following the company's announcement of an optimistic outlook for the quarter ended September 30, 2026 (Q2 FY27). The consumer goods giant anticipates consolidated revenue growth in double digits, with its crucial India Fast-Moving Consumer Goods (FMCG) business also expected to achieve double-digit acceleration—its strongest performance in recent quarters.
The company highlighted that demand conditions remained stable throughout the quarter, despite a challenging operational landscape characterized by renewed geopolitical tensions in the Middle East, persistent inflationary pressures on various commodities, and deficit rainfall. Dabur expressed confidence in an impending acceleration of consumption, buoyed by the upcoming festive season.
Segment-Wise Performance Highlights
Within the India FMCG division, several key segments are projected to deliver robust growth:
- Home & Personal Care (HPC): Expected to record double-digit growth.
- Hair Oils and Shampoos: Forecasted to achieve high-teens growth, continuing a four-quarter streak of double-digit expansion.
- Oral Care: Anticipated to post mid-single-digit growth, building on a high base.
- Home Care: Projected to grow at a high-single-digit rate.
- Skin Care: Expected to register double-digit growth.
Dabur's Healthcare business is slated for mid-single-digit growth. The Over-the-Counter (OTC) & Ethicals segment is likely to experience a sequential recovery with early-teens growth, while Digestives are expected to maintain strong momentum with high-teens growth. However, health supplements faced a temporary drag due to a portfolio-wide transition to refreshed packaging and labels.
The Food and Beverages business is set for mid-teens growth, with Foods continuing its strong double-digit expansion. Beverages are expected to recover sequentially, growing in the early teens, supported by an expanded product range across formats and price points, coupled with a favorable season.
International Business Resilience and Profitability
Dabur's international business is projected to achieve high-teens growth in rupee terms, even amidst significant headwinds in the Middle East. Countries like Egypt, Turkey, the US, Bangladesh, and the UK each reported strong double-digit growth in INR terms.
On the profitability front, Dabur acknowledged continued elevated inflationary pressures, particularly affecting the HPC and OTC & Ethicals segments, which impacted operating margins during the quarter. These pressures were partially mitigated by carefully implemented price increases and ongoing cost-saving initiatives. Despite these challenges, profit after tax is still expected to maintain double-digit growth.
The company clarified that this update reflects preliminary performance and demand trends. Detailed financial results and an earnings presentation will follow once the Q2 FY27 results receive board approval.