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Dabur India Ltd. Q3FY26 Result Update

4 mins read
4 February 2026

Sector Outlook: Positive

Steady Growth with Improving Demand Outlook and Resilient Profitability

Dabur reported a healthy and broad-based Q3FY26 performance, reflecting steady demand recovery and strong execution despite input cost pressures. Consolidated revenue grew 6.1% YoY to Rs. 3,559 crores, driven by consistent market share gains across key FMCG categories and a ~6% growth in the India business. Profitability remained resilient, with net profit (before exceptional items) rising 10.2% YoY to Rs. 569 crores and operating profit increasing 7.7% YoY to Rs. 734 crores, supported by operating leverage and premiumization initiatives, with EBIDTA margin of 20.6% and PAT margin of 16.0%. Demand trends remained encouraging, with rural markets outperforming urban for the eighth consecutive quarter, aided by Dabur’s deep rural reach of over 1,33,000 villages and expansion of total distribution to 8.5 million outlets. Key categories delivered strong performance, led by hair oils (up 19.1% YoY) with significant market share gains, toothpaste (10% growth), and foods (up 14% growth), while beverages and air fresheners also saw healthy traction. The international business grew 11.1% YoY, driven by robust momentum in MENA, Turkey, the US and Bangladesh. Overall, management described the quarter as steady, with improving demand visibility, strong brand performance, and confidence in sustaining volume-led growth and resilient margins in the coming quarters.

Valuation and Outlook  

Management remains cautiously optimistic on Dabur’s outlook post Q3FY26, expecting gradual improvement in demand conditions, with a sharper recovery visible from the coming quarters. Growth is likely to be volume-led, supported by easing input cost pressures, normalization in consumer sentiment, and potential policy support such as GST rate cuts, which could aid affordability across categories. Rural demand is expected to stay resilient, while urban markets should see a pickup driven by premiumization, modern trade and e- commerce. Margin trajectory is expected to improve sequentially, aided by softening commodity prices and a richer product mix, although pricing-led growth will remain limited. With strong brand equities, continued innovation, expanding distribution reach and healthy momentum in international markets, Dabur is well positioned to deliver high single-digit revenue growth with stable to improving profitability over the medium term.

Key concall Highlights

Demand Environment & Macro Commentary

  • Management highlighted a gradual recovery in domestic demand, with rural markets continuing to outperform urban markets.
  • Urban demand showed early signs of improvement and is expected to strengthen further aided by potential GST rate cuts, which could improve affordability across categories.
  • Demand traction is expected to pick up meaningfully from the next quarter, driven by normalization in consumption patterns.

Hair Care Portfolio (Hair Oils & Shampoos)

  • The company remains focused on premiumization in hair oils and shampoos to drive long- term value growth.
  • Hair oil performance in the quarter was largely value-led, supported by price increases, which management clarified as largely one-off in nature.
  • Volume growth remained subdued at ~3–4%, reflecting near-term demand pressures.

Oral Care Segment

  • Oral care continues to benefit from structural category tailwinds and is expected to sustain healthy growth going forward.
  • Management remains confident in the segment’s medium-term growth prospects, supported by brand strength and consumer penetration.

Healthcare & Chyawanprash

  • Dabur is actively pursuing premiumization in Chyawanprash to support margin expansion.
  • Sugar-free  variants  are  performing  particularly  well,  reflecting  evolving  consumer preferences.
  • The company is also exploring new formats, including Chyawanprash gummies, aimed at widening consumption occasions and attracting younger consumers.

Beverages & Active Portfolio

  • The Active portfolio (including Juices and Coconut Water) continued its strong double-digit growth momentum, led by premium products.
  • Management indicated that this momentum is expected to sustain, given higher premium mix and improving distribution.
  • Beverage revenues for the quarter stood at ~Rs. 200 crores.
  • The out-of-home channel performed better than expected despite the winter season, and
  • management expects continued traction in this channel.
  • For the next year, Dabur is targeting double-digit growth in the juice business, driven by portfolio expansion and improved channel performance.

Outlook & Guidance

  • Q4FY26 revenue growth is expected to be in the high single digits, supported by improving demand trends.
  • Management reiterated that FY27 growth will be volume-driven rather than value-led, given softer commodity prices and limited pricing levers.
  • Overall, the company is targeting high single-digit revenue growth, with improving volume momentum and steady margin recovery.
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