Dabur India reported a 5.4% year-over-year consolidated revenue increase in Q2 FY26, with international business growing by 7.7% and India FMCG by 5.7%. The company launched Dabur Ventures, allocating INR 500 crore for investments in new-age, digital-first businesses. Despite a 3%-4% GST impact, Dabur anticipates improved demand and volume growth in the second half of the year, driven by rural markets and premiumization.
Financial Performance
In Q2 FY26, Dabur India’s consolidated revenue increased by 5.4% year-on-year. The international business grew by 7.7%, while the India FMCG business saw a growth of 5.7%. The HPC portfolio performed well, growing by 8.9% year-on-year, with the Toothpaste segment leading with a 14% increase. Operating profit rose by 6.4% and PAT by 6.5%.
Segment Highlights
The Toothpaste portfolio delivered strong growth of 14%, driven by the Dabur Red franchise and Meswak. The Herbal segment outpaced the non-herbal segment by 770 bps. Honitus registered a strong growth of 28% in the OTC and Ethicals category. The ‘Real Activ’ 100% juices continued to scale rapidly, reporting a robust growth of 45%.
Dabur Ventures
Dabur announced the launch of Dabur Ventures with a capital allocation of INR 500 crore over the next few years. This initiative will focus on investments in high-potential, new-age, digital-first businesses aligned with Dabur’s strategic vision.
GST Impact and Outlook
The implementation of GST had an impact of around INR 100 crore, representing approximately 3%-4% of the business. Looking ahead, Dabur anticipates a sequential recovery in demand supported by improving macros and recent GST rate reductions. The company expects mid- to high-single-digit growth in the second half of the year, backed by low- to mid-single-digit volume growth. Rural markets and premiumization are expected to be key growth drivers.
Strategy and Future Plans
Dabur is focusing on expanding its rural footprint through initiatives like Project Saksham. Premiumization remains a key strategy, with the company aiming to increase the premiumization percentage of its overall mix. The company also intends to maintain better margins than the top line, driven by gross margin improvements and saving initiatives.
Source: BSE
