Analyst Concall
Dabur sees higher single-digit growth for rest of FY26
This story was originally published at 18:53 IST on 31 July 2025
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--Dabur: Optimistic of sequential recovery in demand on low inflation
--CONTEXT: Dabur India management's comments in post-earnings investor call
--Dabur: Optimistic of sequential recovery in demand on favourable monsoon
--Dabur: Don't see any pressure on margins
--Dabur: Will be able to protect margins even if inflation were to rise
--Dabur: Expect beverage growth in lower single digit
--Dabur: Oral, skin care segment low-hanging fruit for us going ahead
--Dabur: Working towards significant improvement in operating margins vs FY25
By Shreya Shetty and Pratiksha
MUMBAI – The management of Dabur India Ltd. is guiding for higher single-digit growth for the rest of 2025-26 (Apr-Mar) after unseasonal rainfall during peak summer months impacted the performance of the company's summer-centric portfolio in the first three months of the fiscal.
Speaking to analysts and investors at a post-June quarter earnings conference call, the management said it is guiding for double-digit growth in Jul-Sept due to a lower base year. The early onset of the southwest monsoon in the country impacted the company's beverages segment and the Glucose brand. The management expects beverage growth to be in single digits in the September quarter.
The net profit of the company reflected the muted growth in the top line and rose 2.8% on year to INR 5.14 billion. The bottom line of the company saw a 60.5% growth compared to the previous quarter.
The company is optimistic of a sequential recovery in demand due to a favourable monsoon, lower inflation, and sustained momentum in rural and urban demand, it said. Net revenue from operations for the company rose by a marginal 1.7% on year in the June quarter. Sequentially, however, the consumer goods company recorded a 20.3% gain in the top line as the previous quarter was a particularly dismal one.
The overall operating margin has been maintained, and the company does not expect any pressure on margins further, it said. It expects more inflationary pressure going ahead, especially in the edible oils category. However, it will be able to protect margins even if inflation were to rise 7-8% as the company has taken fresh price increases, the management said.
It is working towards significant improvement in operating margins as compared to last year through premiumisation and a better mix and contemporisation of output, it said.
Going ahead, the company wants to scale up its business in all three verticals --healthcare, home and personal care, and food and beverages. However, among these verticals, the oral care and skin care categories are "definitely low-hanging fruit" for the company going ahead, the management said.
"Dabur's Toothpaste business reported a 7.3% growth during the first quarter. The Skin and Salon portfolio also grew by 9.2% while the Hair Care business posted a 7% secondary growth during the quarter," the company said in a release on Thursday. End
Edited by Tanima Banerjee
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