Dabur India

Dabur India reported a consolidated revenue growth of 6.1% year-on-year for Q3 FY26, with the domestic FMCG business growing 6% year-on-year, supported by a 3% volume growth. Operating profit increased by 7.7%, and PAT grew 10.1%, although adjusted PAT (excluding a one-time^📎 labor law provision) grew 7.2%. The company observed a gradual demand recovery following GST rate cuts, with rural markets continuing to outperform urban areas, and demand improving significantly in December after transient^📎 headwinds in October and November.

The HPC portfolio demonstrated strong performance, recording a 10.6% growth year-on-year. The Hair Oil portfolio was a key driver, registering a robust 19.1% growth, with both perfumed and coconut oils growing in double digits, leading to a 193 bps market share gain. The Toothpaste portfolio also delivered a robust 10% growth, with Meswak and Herbal segments each growing 25%, and the herbal segment outperforming the non-herbal by 530 basis points. Significant market share gains were also noted in Air Freshener (131 bps), Nectars (195 bps), and Juices (650 bps).

Dabur continued its focus on premiumization across categories. In juices, the premium portfolio, including 'Real Activ' 100% juices and coconut water, scaled up significantly, growing 38% and 52% respectively. New product developments (NPDs) are contributing to growth, with health juices growing 17-18%, ghee 33%, and edible oils 50%. The company is also modernizing Chyawanprash formats, with sugar-free variants performing well and gummies/bars planned for future introduction.

The international business registered a growth of 11% in INR terms and 7.5% in constant currency terms. Key regions like MENA, Sub-Saharan Africa, and UK/European Union all showed strong growth of 12.5%, 30%, and 30% respectively in INR terms. The Ayurvedic health juices portfolio grew 17.9%, and the Culinary portfolio grew 14%. However, the Nectar portfolio remained muted due to an unfavorable season, and export/emerging markets faced impacts from tariffs and geopolitical disturbances.

Management is optimistic about sequential recovery, projecting high single-digit sales growth for Q4 FY26 and high single-digit to low double-digit growth for FY27. The strategy for FY27 emphasizes volume-led growth, supported by GST tailwinds, rather than price-driven growth, with an anticipated 2% price increase. The company aims to improve operating margins over the current year, targeting a return to its erstwhile 20% operating margin, through calibrated price increases and prudent cost-saving measures, despite ongoing competitive intensity in some categories like oral care.