General Trade continued to grow across both urban and rural markets, with rural growth outpacing urban markets. The company attributed the trend to its continued efforts under Project Saksham.
Dabur India is expecting consolidated revenue to register double-digit growth in the quarter ended September 30, 2026, with its India FMCG business also likely to accelerate to double-digit growth, according to the company’s Q2 FY27 business update.
The quarter saw steady demand despite a volatile operating environment marked by renewed geopolitical tensions in the Middle East, inflationary pressure across commodities and deficient rainfall. Dabur said its India FMCG business is expected to deliver its strongest performance in recent quarters.
HPC remains a key growth driver
Within the India business, the Home and Personal Care (HPC) portfolio is expected to record double-digit growth. Hair Oils and Shampoos are projected to grow in the high teens, supported by performance across both perfumed and coconut hair oils. This would mark the fourth consecutive quarter of double-digit growth for the segment.
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Oral care is expected to register mid-single-digit growth on a high base, while Home Care is likely to grow in the high single digits. Skin Care is expected to post double-digit growth.
The Healthcare business is projected to grow in the mid-single digits. Within the segment, OTC & Ethicals is expected to recover sequentially with early-teens growth, while Digestives are expected to maintain momentum with high-teens growth.
Health supplements, however, were impacted during the quarter by the ongoing transition to refreshed packaging and labels across the portfolio, resulting in a temporary drag on performance.
Food and Beverages is expected to grow in the mid-teens. The Foods business is likely to maintain strong double-digit growth, while Beverages is expected to record early-teens growth, reflecting a sequential recovery supported by an expanded portfolio across formats and price points and a favourable season.
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E-commerce, quick commerce and rural markets remain in focus
Dabur’s emerging channels, including e-commerce and quick commerce, are expected to maintain strong growth, as the company continues to invest in an omnichannel distribution strategy. Modern Trade is also expected to continue its double-digit growth trajectory.
The International Business is expected to post high-teens growth in INR terms despite severe headwinds in the Middle East. Egypt, Turkey, the US, Bangladesh and the UK each recorded strong double-digit growth in INR terms during the quarter.
Input costs weigh on operating margins
While demand remained steady across businesses, elevated inflationary pressures, particularly in HPC and OTC & Ethicals, continued to affect operating margins. Dabur said the pressure was partly offset through calibrated price increases and ongoing cost-saving initiatives.
Profit after tax is expected to continue growing at a double-digit rate.
Dabur enters the quarter with a portfolio spanning its major consumer health, personal care, oral care, home care, food and beverage categories. The company has three brands with annual revenues above Rs 1,000 crore—Dabur Amla, Dabur Red Toothpaste and Real—along with three brands in the Rs 500-crore-plus range and 16 brands in the Rs 100-500 crore range.
The company has a retail reach of 8.5 million outlets and is described as India’s second-most distributed FMCG company. In FY26, Dabur reported consolidated revenue from operations of Rs 13,192 crore and consolidated profit after tax of Rs 1,895 crore.
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First Published onOctober 6, 2026, 13:04:31 IST
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