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Informist, Thursday, Jan. 29, 2026

 

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--Dabur: Volume growth in hair oil segment muted at 3-4% 
--CONTEXT: Dabur India mgmt's comments in post-earnings call with analysts 
--Dabur: Oral care segment will continue growing in coming months 
--Dabur: Q4 definitely going to be better for Chyawanprash 
--Dabur: Targeting double-digit growth in beverage and juice ops next year 
--Dabur: GST rate cuts helping consumer sentiment across categories 
--Dabur: Demand should only improve in Q4 vs Q3 
--Dabur: Expect sequential improvement in margins in coming qtrs 
--Dabur: See high-single-digit top-line growth in Q4 YoY 
--Dabur: Will hike prices in Q4; to continue raising through FY27 
--Dabur: To bring INR 10, INR 20, INR 50, INR 100 price points in drinks ops 

 

By Ashutosh Pati and Arundathi A R

 

MUMBAI – Dabur India Ltd. plans to raise the prices of its products in the March quarter and expects to continue doing so through the financial year 2026-27 (Apr-Mar), the management told analysts in a post-earnings conference call Thursday. The management said it had postponed a lot of planned price increases earlier following the goods and services tax rate cut.

 

The company is targeting a high-single-digit year-on-year growth in its top line for the March quarter. It expects this growth to be led by a significant rise in volumes following the GST rate cut and by the planned price hikes. "...that's what we are aspiring to deliver, a high-single-digit growth (in top line), which will be either in line with Q3 growth or will be a little higher than what we've delivered in Q3," the management said.

 

Dabur India reported a consolidated net profit of INR 5.60 billion for the December quarter on a revenue of INR 35.59 billion. Its top line rose over 6% on year but was marginally higher than expectations.

 

Dabur's performance in the first quarter of FY26 was hit by seasonality and in the second by consumers' wait for the GST cut. The management said the December quarter was significantly better with consumer confidence improving and the current quarter "would be even better" as it expects demand to improve. The company is expecting a significant boost to its volumes next year as the GST rate cut is improving consumer sentiment across all its business segments. "...next year growth is going to be more volume-driven and not so much price-driven or value-driven growth", the management said.

 

Dabur India also expects double-digit growth in its beverage and juice segment in FY27, mainly because of a low base effect. "...the season did not favour us in the last summers," the management said. "So, there was some stock. So, we are in the process of liquidating all that stock in the marketplace so that we start the new season afresh." The company will introduce INR 10, INR 20, INR 50, and INR 100 price points in its drinks portfolio, which is expected to further boost the segment's performance.

 

Despite increasing competetion in the oral care market, the company is confident of achieving significant growth in this segment. Both herbal and non-herbal oral care products are getting good traction, with the former outperforming the latter by 500 basis points in the December quarter, the management said. "...oral care will continue on a growth trajectory. I don't see a reason why this should go down and the tailwind on natural herbal is actually helping us," a top official said.

 

The company said tertiary sales of Dabur Chyawanprash rose 11% in the December quarter and the product gained market share. However, there was a big gap in primary and secondary sales of the product. "So, tertiary, in terms of offtake, I think the season has favoured us and the brand has been doing exceedingly well," the management said. "But why the primary has been low is because last year, there was some carry-forward stocks, which we had to liquidate in the marketplace."

 

Dabur India now expects the March quarter to be better for Chyawanprash sales. "Q4 will give you a very high double-digit growth as we've done a very lower base of Chyawanprash," the management said. The company also expects its margins to improve in upcoming quarters because of lower inflation and growth in its premium portfolio.

 

Dabur's hair oil portfolio registered growth of over 19% on year in value terms in the December quarter, led by a hike in coconut oil prices. However, volume growth in the segment remained muted at 3-4%, the management said. The company registered a market share gain of 193 bps in the segment during the quarter. Thursday, Dabur India shares ended 1% lower at INR 510.45 on the National Stock Exchange. The company announced its results after market hours.  End

 

Edited by Rajeev Pai

 

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