Analyst Concall
Dabur eyes mid-to-high single-digit revenue growth Oct-Mar
This story was originally published at 20:39 IST on 30 October 2025
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--Dabur: Optimistic about sequential recovery in demand
--CONTEXT: Dabur India mgmt's comments in post-earnings call with analysts
--Dabur: GST rate-cut transition impacted revenue by 3-4% in Q2
--Dabur: Input tax credit will be an issue for company due to GST rate cut
--Dabur: Chyawanprash loading worth INR 600 mln-INR 700 mln delayed to Q3
--Dabur: Much like FMCG industry, co seeing rural demand higher than urban
--Dabur: Expect US tariff woes to get resolved in short term
--Dabur: Expect mid-to-high single-digit value growth in Oct-Mar
--Dabur: GST rate cut transition-related issues visible into Oct as well
By Shakshi Jain and Anjana Therese Antony
MUMBAI – Fast-moving consumer goods major Dabur India Ltd. is eyeing mid-to-high single-digit revenue growth in the second half of the ongoing financial year, backed by a low-to-mid single-digit volume growth, a top company official said in a post-earnings conference call with analysts Thursday.
The company is also hopeful of a sequential recovery in demand amid expectations of a strong winter this year, improving macroeconomic factors, and the recent Goods and Services Tax rate cuts. A harsh and prolonged winter will benefit nearly one-third of the company's portfolio in the ongoing quarter, the company management said.
In the September quarter, Dabur India's consolidated net profit rose over 6% on year to INR 4.53 billion, aided by price increases and cost-saving initiatives. However, the company's bottom line for the quarter fell nearly 12% on a sequential basis. The FMCG player's revenue rose 5.4% year on year to INR 31.91 billion in the three-month period.
Dabur India's revenue growth in the September quarter was reined in by issues tied to transition to the new GST rates, the management said. "The GST impact is in the range of around INR 100 crores (INR 1 billion), give or take, for us. It is in the range of around 3-4% for us."
Moreover, the impact is not limited to the September quarter, the company expects a spillover into the first 15-16 days of October. Dabur India also estimates challenges tied to input tax credit due to the new GST rates. According to the company, there is a gap of 1.25-1.5% between its weighted average output tax and input tax. The company is working internally, besides engaging an external consultant, to identify ways to bridge this gap.
"...it is a regular issue that the government has still not clarified what would be the probable solution. So technically and legally, you can get some sort of refund at least from the raw material and factory perspective. But for services, as the legal conditions are in place, it is not refundable."
In case there is no resolution from the government, the company said it may have to increase prices, but it will first see how the FMCG industry is responding to the issue.
The company also blamed weather conditions in the September quarter for performance of select categories such as the beverage business. Disbursement of Chyawanprash inventory worth INR 600 million to INR 700 million was delayed to the current quarter due to weather conditions and older stock with trade partners, the management said.
The company is implementing several strategies, including launch of new variants, to improve sales of Dabur Chyawanprash, which have been under pressure in recent years. "In the current season also, we are wanting to launch another variant of Chyawanprash. So, from the base Chyawanprash, we are premiumising Chyawanprash so that our gross margin is actually moving up while the brand is becoming non-seasonal and getting spread out," the management said.
On demand, the company said rural India is sustaining growth for the company, much like the case for the overall industry. The company is seeing 4-5% difference in growth across business in rural India compared to urban markets. In the ongoing quarter, the management said it does not see any major hurdles and hopes for a resolution to US tariffs in the short term.
On Thursday, Dabur India shares closed at INR 501.55 on the National Stock Exchange, down 1.3% from the previous day. The company announced its September quarter results after market hours. End
Edited by Ashish Shirke
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