Dabur India — Q4 FY26 earnings call

Call held 7 May 2026

Management summary

Dabur India reported a strong Q4 FY26 with consolidated revenue up 7.3% and domestic FMCG growing 9.5% driven by 6% volume growth. HPC and Health Care segments showed robust performance, with significant market share gains in key categories. However, geopolitical issues in the Middle East led to muted international growth and rising input costs, prompting price increases. Management expects sequential recovery and continued double-digit growth in key segments.

Highlights

  • Consolidated revenue grew by 7.3% year-on-year, with domestic FMCG business growing at 9.5% backed by 6% volume growth.

  • HPC portfolio recorded strong momentum, growing 17% during the quarter, with Hair Oil up 28% and Shampoo up 20%.

  • Home Care portfolio delivered robust 24% growth, driven by Odonil (20%), Odomos (48%), and Sanifresh (over 20%).

  • Health care categories like Hajmola (12.7%), Isabgol (over 50%), Honey (over 20%), and Honitus (over 36%) showed strong growth.

  • Operating profit grew by 8.2% and reported PAT grew by 15%.

Concerns

  • Geopolitical headwinds in the Middle East are impacting input costs and supply chain across businesses.

  • Inflation has picked up to around 10% across many portfolios, necessitating 4% price increases.

  • Glucose portfolio was impacted by unseasonal rains in March, and the overall health care business saw a mid-single digit decline due to this.

  • International business reported a muted growth of 2.5% in INR terms, impacted by the war in West Asia, supply chain disruptions, and demand due to expats leaving.

Key financials

  1. Consolidated Revenue Growth 7.3% +7.3%YoY
  2. Domestic FMCG Growth 9.5% +9.5%YoY
  3. Domestic FMCG Volume Growth 6% +6%YoY
  4. Operating Profit Growth 8.2% +8.2%YoY
  5. PAT Growth 15% +15%YoY

What they filed

Q1 FY27: revenue up 10.5%, net profit up 15.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue3,029 3,355 2,830 3,405 3,191 +5%3,559 +6%3,038 +7%3,764 +11%
EBITDA553 682 427 667 588 +6%734 +8%461 +8%741 +11%
Net profit418 516 313 508 445 +6%554 +7%362 +16%586 +15%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • HPC Portfolio (India)
    17% Growth
  • Hair Oil Portfolio
    28% Growth
  • Shampoo Portfolio
    20% Growth
  • Home Care Portfolio
    24% Growth
  • Odonil Growth
    20% Growth
  • Odomos Growth
    48% Growth
  • Sanifresh Growth
    20% Growth
  • Skin Care Portfolio
    10% Growth
  • Toothpaste Portfolio
    7.2% Growth
  • Digestive Portfolio
    15% Growth
  • Hajmola Franchise Growth
    12.7% Growth
  • Isabgol Growth
    50% Growth
  • Honey Portfolio Growth
    20% Growth
  • Honitus Growth
    36% Growth
  • Ayurvedic Health Juices Growth
    30% Growth
  • Lal Tail Growth
    10% Growth
  • Premium Beverage Portfolio Growth
    26% Growth
  • Coconut Water Growth
    100% Growth
  • Culinary Business Growth
    30% Growth
  • International Business Growth (INR terms)
    2.5% Growth
  • Sub-Saharan Africa Growth
    20% Growth
  • U.K. and EU Growth
    10% Growth
  • Hobi Growth
    16.5% Growth
  • Bangladesh Business Growth
    22% Growth
  • Namaste U.S. Growth
    6.2% Growth

Guidance & targets

Overall Growth

  • Revenue Growth Overall Growth · future · Medium confidence high single to a low double-digit growth

    Previously high single → high single to a low double-digit growth

    So earlier, we had given a guidance of a high single and now we want to revise it. We are seeing high single to a low double-digit growth because you've got some pricing coming in because of inflation. So, it will be a combination of pricing and volume. So, we'll see 50% growth may be coming from volume and balance coming from pricing.

    — Mohit Malhotra

HPC

  • HPC Growth HPC · next year · High confidence double digit, if not high teens. At least a double digit
    The whole year HPC has seen a double-digit growth and for next year also, we expect HPC to grow at double digit, if not high teens. At least a double digit is a bare minimum that we expect HPC to grow.

    — Mohit Malhotra

Oral Care

  • Oral Care Growth Oral Care · future · High confidence double digits
    So, I expect Oral Care to continue its trajectory of double digits, which is what we registered in the full year.

    — Mohit Malhotra

Home Care

  • Home Care Growth Home Care · future · Medium confidence sustain that growth [24%]
    Home Care portfolio, Home Care has grown by 24% and we expect it to sustain that growth with Odonil growth at 20% and gel pockets is a tailwind on the whole category.

    — Mohit Malhotra

Food & Beverages

  • F&B Growth Food & Beverages · future · Medium confidence double-digit growth
    I told you food and beverages, we pencilled a target for us for a double-digit growth because of the low base and on an assumption that season will play out in our favour.

    — Mohit Malhotra

Badshah Business

  • Badshah Business Growth Badshah Business · future · Medium confidence continue that trajectory [12%]
    Our Badshah business, which is also a part of our food portfolio is growing at 12% and we want to continue that trajectory.

    — Mohit Malhotra

International Business

  • International Business Growth International Business · future · Medium confidence double digits
    See, our international business growth rate traditionally has been double-digit business. We expect international business to grow in double digits, although volume will go down, pricing increase will go down, but the dollar has appreciated as compared to rupee.

    — Mohit Malhotra

Margins

  • Operating Margins Margins · Q1 · High confidence sequentially improve
    If you look at our operating margins also, our operating margins are the lowest in the fourth quarter, which happens to be a beverage quarter and a summer-centric quarter. So, the margins are lower. If you enter the first quarter, in any case, sequentially, the margins will improve.

    — Mohit Malhotra

  • Operating Margins Margins · future · High confidence improve year-on-year
    But not just sequentially, we want to improve the margins year-on-year on the back of premiumization and on back of pricing and other initiatives that we people are taking.

    — Mohit Malhotra

Pricing

  • Price Increases Pricing · current · High confidence 4%
    We now see an inflation of roughly around 10% hitting us in a lot of portfolios, barring the portfolio of beverages and healthcare. Within HPC, all the subparts of the portfolio are reeling under the pressure of inflation, and therefore we've already announced a 4% price increases across different parts of the business to mitigate the inflationary impact that we are seeing.

    — Mohit Malhotra

What to watch in Q1 FY27

Sequential recovery in India business

next quarter
Current Expected to continue
Target Sustained growth driven by volume and price

Why it matters

Indicates the health and momentum of the core domestic market amidst inflation.

I think the growth trajectory should continue and sequential recovery should continue that will be driven partly by volume and partly by price.

Risks & concerns

  • Geopolitical headwinds in the Middle East

    high

    Impacting input costs and supply chain across businesses, including India, and causing muted international business growth.

    Management acknowledged

  • Input cost inflation

    high

    Inflation of around 10% is hitting many portfolios, necessitating price increases to mitigate impact.

    Management acknowledged

  • International business challenges (MENA region)

    high

    War in West Asia causing supply chain disruptions, inflation, and demand reduction due to expats leaving, leading to muted growth.

    Management acknowledged

  • El Nino impact / unseasonal rains

    medium

    Unseasonal rains in March impacted the glucose portfolio and could affect summer-centric products like beverages if severe summer conditions do not materialize.

    Management acknowledged

  • Volume suppression due to price hikes

    medium

    Inflation leading to price hikes could suppress volumes, though management aims for a balance of volume and price-led growth.

    Management acknowledged

Q&A highlights

6 direct
Growth acceleration and one-off numbers in Q1 Direct
Yes. So, we think that in quarter 1, the growth will sustain. In HPC at least, we are seeing good traction in the month of April also. In health care portfolio, barring glucose, which is impacted by unseasonal rains here, we see rest parts of the portfolio doing well for us.

Analyst sought clarity on the sustainability of strong growth numbers and potential one-offs, which management addressed by confirming sustained growth expectations for Q1.

Asked by Abneesh Roy

Impact of El Nino on summer-centric products and supply-side inflation Partial
As far as the El Nino impact is concerned, we hear from MET, from you and from all the media people that the summer is going to be very severe, but we are not seeing that severity on ground as yet and when we go outside, we only see thunderstorms here. I don't know how Mumbai is, but at least Delhi and the North India where we are very salient in beverages, we are seeing thunderstorms. And if that is anything to go by, then I'm a worried man.

Analyst questioned the impact of El Nino on glucose and juice, and supply-side inflation. Management expressed concern about current weather not aligning with El Nino predictions, indicating uncertainty for summer-centric products.

Asked by Abneesh Roy

Toothpaste performance and market leader comeback Direct
So not at all. I think we're not even at a threshold of satisfaction in terms of happiness index. We are quite unhappy with this performance because entire HPC portfolio has grown by 17% with oral care being a outlier where we've seen a muted performance of around 6%, 7% growth in Oral Care.

Analyst questioned satisfaction with toothpaste growth and the market leader's potential comeback. Management expressed dissatisfaction with the 6-7% growth, despite outperforming the category, and outlined plans for stronger double-digit growth.

Asked by Abneesh Roy

Rural-urban demand gap narrowing and factors driving changes Direct
So I was just talking to Abneesh only that we see overall FMCG growth at around 9.2% out of which rural happens to be 11.4% and urban happens to be 8%. So, there is 340 basis points of difference between urban and rural, where rural is outpacing urban.

Analyst sought clarification on rural-urban demand trends. Management confirmed rural outperformance but noted the gap has narrowed from 500 bps to 340 bps, indicating some moderation in rural growth.

Asked by Mihir Shah

FY27 outlook, revenue and margin impact from El Nino and pricing Partial
So, I'm not saying that we are seeing the depression in rural. I'm talking about Nielsen data. So, for us, 9.2% growth is very healthy growth, and that's the syndicated data growth that we're talking about. Our business in India has also grown by 9.5%, and as far as we are concerned, we will see sequential improvement both in urban and rural.

Analyst asked about the FY27 outlook considering El Nino and pricing. Management revised growth guidance to high single to low double-digit, driven by both volume and price, but did not fully address the El Nino impact on FY27.

Asked by Mihir Shah

Drivers of HPC growth and sustainability Direct
So now on the hair oils, what has driven this growth in HPC, I'll come to that. Hair oil business has actually grown by 28% and it is just not value or the pricing growth due to inflation of coconut oil that you've seen with the competitor. But for us, it is a growth which is driven by more value-added oils of what we call perfumed oils.

Analyst inquired about the drivers of strong HPC growth and its sustainability. Management attributed it to volume growth, market share gains, premiumization, and consumer shifts, outlining initiatives for continued growth.

Asked by Percy Panthaki

Balancing pricing actions with market share and consumption growth amidst input cost increases Direct
Yes. So, input costs are increasing to offset that input cost increase, we will be doing price increases, like I mentioned to you, on the larger packs. In the smaller packs where we can't do price increases at INR10, INR20, we'll be doing shrinkflation. We'll be shrinking our packs. So that's a surrogate sort of price increases, and that's how we'll be protecting our margins.

Analyst questioned how Dabur balances pricing and market share with rising input costs. Management explained their strategy of price increases on larger packs and shrinkflation on smaller, low-unit-price packs to protect margins.

Asked by Kshitij Jadhav

Assessment of international business and margin hit Direct
See, our international business growth rate traditionally has been double-digit business. We expect international business to grow in double digits, although volume will go down, pricing increase will go down, but the dollar has appreciated as compared to rupee. So, I think that the upside Indian rupee depreciating by 6% is a delta on translation gain that we will get as far as top line is concerned and cost savings, et cetera, that we will do for the bottom line.

Analyst asked for an assessment of the international business given the muted growth. Management expects double-digit growth despite volume/pricing changes, citing rupee depreciation as a translation gain.

Asked by Kunal Vora

2 min read 6 chapters

Detailed narrative

Strong Domestic FMCG Performance Driven by Volume Growth

Dabur India delivered a robust Q4 FY26 with consolidated revenue growing 7.3% year-on-year. The domestic FMCG business was a key driver, expanding by 9.5%, significantly supported by a 6% volume growth. This performance reflects strong consumption resilience in India, backed by fiscal measures and a narrowing gap between urban and rural demand.

HPC Portfolio Leads Growth Across Categories

The HPC portfolio maintained strong momentum, recording a double-digit growth of 17% during the quarter. This was fueled by exceptional performance in Hair Care, with Hair Oil growing 28% and Shampoo 20%. The Home Care segment also saw robust growth of 24%, with Odonil up 20%, Odomos up 48%, and Sanifresh over 20%. Skin Care also registered double-digit growth.

Health Care and F&B Show Mixed Results

Within the Health Care category, the digestive portfolio grew in mid-teens, with Hajmola up 12.7% and Isabgol over 50%. Health supplements like Honey grew over 20%, and Honitus saw over 36% growth. However, the Glucose portfolio was impacted by unseasonal rains in March. The Beverages portfolio saw a sequential recovery, with premium beverages growing 26% and Coconut Water up 100%, while the Culinary business grew 30%.

International Business Muted by Geopolitical Headwinds

The international business reported a muted growth of 2.5% in INR terms. This was primarily due to the war in West Asia, which impacted the MENA region through supply chain disruptions, inflation, and reduced demand as expats left. Despite this, some regions like Sub-Saharan Africa (20%), U.K. and EU (10%), and Bangladesh (22%) showed strong growth.

Inflationary Pressures and Pricing Strategy

The company is facing significant inflationary pressures, with inflation picking up to around 10% across many portfolios. To mitigate this, Dabur has already announced a 4% price increase across different parts of the business. Management indicated a strategy of price increases on larger packs and 'shrinkflation' on smaller, low-unit-price packs to protect margins and balance volume growth.

Focus on Margin Improvement and Premiumization

Dabur is committed to improving margins sequentially and year-on-year. This will be achieved through a combination of price increases, product mix improvements, cost-saving initiatives, and a continued focus on premiumization. The company aims to prioritize margin protection, especially in a high-inflation environment, while also investing in brand building and GTM transformation.

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