In a regulatory filing made during market hours today, the FMCG major stated that the Government’s recent GST reform will boost consumption across categories and strengthen demand in both urban and rural markets.
Dabur’s key categories like oral care, juices, hair oils, shampoo, digestives, OTC, branded ethicals and culinary, which represents approximately 60% of the company’s India business, will benefit from 12%/18% GST rate cut to 5%. Now, nearly 85% of its portfolio is at a GST rate of 5%, which is a key positive.
Following the GST rate reduction announcement, trade witnessed temporary disruption as consumers deferred purchase to benefit from lower MRPs. Distributors and retailers also focused on liquidating the existing higher-priced inventory. This resulted in a short-term moderation in sales during the month of September and, consequently, in Q2 FY26.
Despite these headwinds, the company’s non-GST impacted brands have performed well. Retail offtakes continued to be resilient, enabling us to sustain market share gains in 90%+ of its portfolio.
In home & personal care, the oral care portfolio continued its strong growth trajectory and is likely to deliver double digit growth. This was on the back of strong on ground execution and focused marketing initiatives.
The skin care portfolio is expected to grow in high-single digits. In the Hair care portfolio, it expects shampoos to register high-single digit growth while hair oils are expected to report mid-single digit growth.
In healthcare, key brands are likely to register double-digit growth underpinned by strong volumes.
Within F&B, the culinary business is expected to record double-digit growth with strong performance in oils & fats. In beverages, the company’s strategy of focusing on the premium range is yielding positive results. However, given the higher-than-expected rainfall and floods in July and August, the overall beverage portfolio was impacted.
In terms of channels, e-commerce (including quick commerce) is expected to grow in double digits and modern trade maintained its growth momentum.
In international business, key geographies like MENA, Turkey and Bangladesh are expected to perform well. However, the Nepal business was adversely impacted due to political unrest. Consequently, the company expects its overall international business to post mid-single digit growth in INR and CC terms.
"This quarter we expect consolidated revenue to grow in the mid-single digits and operating profit to grow almost in line with revenue.
With supportive macroeconomic conditions and the recently announced GST rate cuts, consumption is expected to strengthen, and we anticipate revenue growth to regain momentum in the coming quarters," Dabur said in a statement.
Dabur India is among the top four FMCG companies in India. It has business interests in healthcare, personal care, and food products. The company offers products in over 100 countries across the globe, covering health and personal care segments across the herbal and natural space.
The company's consolidated net profit rose 2.76% to Rs 513.91 crore on a 1.66% increase in revenue to Rs 3,404.58 crore in Q1 FY26 over Q1 FY25.
The scrip was up 0.15% to currently trade at Rs 494.15 on the BSE.