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Informist, Thursday, May 7, 2026

 

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--Dabur: See growth sustaining in Apr-Jun across home, personal care pdts
--CONTEXT: Comments by Dabur India mgmt in post-earnings call with analysts
--Dabur: Co's product portfolios hit by high inflation amid West Asia war
--Dabur: See growth in toothpaste pdts in double digits in Apr-Jun
--Dabur: Volumes may get suppressed with inflation picking up
--Dabur: May take second round of price hikes depending on West Asia war
--Dabur: See operating margin improving sequentially in Apr-Jun
--Dabur: Co's mkt penetration, share moving up in hair oils
--Dabur: Homecare segment grew 24% in Q4, see this growth sustaining in Q1
--Dabur: Inflation impact in India business to get passed on to consumers
--Dabur: Will protect margins in India business even if mkt share reduces
--Dabur: Ad spends will depend on how much money is available
--Dabur: Advt spends will depend on how much money is available
--Dabur: Not prudent to splurge on advt during time of high inflation
--Dabur: Supply chain constraints amid West Asia war hit co's exports hard
--Dabur: Co's sales to West Asia 30-35% of overall international business
 

 

By Rajesh Gajra and Ashutosh Pati

 

MUMBAI – Fast-moving consumer goods company Dabur India Ltd. will pass on the impact of the increase in prices and supply constraints in natural gas and crude oil to consumers in India, its management said Thursday in a post-earnings conference call with analysts and investors. Having already taken one round of price hikes in recent weeks, the company may raise prices again if the war in West Asia intensifies, leading to an inflationary impact in the domestic market, the management said. "We have already announced a 4% price increase across different parts of the business to mitigate the inflationary impact that we are seeing," a senior official of the company said.

 

Dabur India intends to protect its margins in its India business, regardless of whether its competitors bite the bullet on price hikes. "Even if we have to take a little bit of a cut in terms of (market) share, we are okay with it," the official said. In international business, however, the company expects pressure on margins if the war in West Asia "continues". 

 

In the domestic fast-moving consumer goods business, the company recorded revenue growth of 10% on-year in the March quarter, with operating profit rising 13%. The March quarter revenue growth in Dabur India's international business was just 3% on year.

 

The management said, apart from inflationary pressures, supply chain disruptions stemming from the situation in West Asia were creating "havoc" for the company. Dabur India's business in West Asia, which accounts for 30-35% of its overall international business, was impacted substantially, a senior company official said. Demand in West Asia was also hit as expats left the region amid the war.

 

In response to a question on whether inflation's impact on domestic markets will lead to a change in the company's advertising policy, Dabur India's management said that advertising spend will depend on how much money is available. "When the market construct is shrinking, it's not very prudent to... splurge with advertising so much. It's better to retain your consumers by giving better value to them," the official said.

 

Dabur's home and personal care products registered 17% on-year growth during the March quarter and it expects to maintain this growth in the June quarter as well. The company's home care segment rose 24% in the March quarter, and it hopes to sustain this growth in the June quarter as well.

 

The company's market penetration in hair oils in the country has improved, with a 154-basis-point rise in market share. Dabur also noticed a shift in consumer sentiment in this segment as a rise in coconut prices led to a narrowing in the index between perfumed oil and coconut oil.

 

The company expects its toothpaste products, such as Dabur Red, Meswak, and Dabur Herbal, to grow in the double digits in Apr-Jun, driven by strong demand. The company is "quite unhappy" with its performance in this segment despite gaining market share. "... it's oral care only where we've seen a muted performance... if I talk to the category head, they are very happy because the category is growing at 2.5% and we are growing by 7% and we are gaining market share," a company official said.

 

Dabur sees a sequential improvement in its operating margins for the June quarter, as the March quarter was seasonally weaker. The company also hopes to improve its year-on-year operating margin by introducing premium products.

 

Dabur India announced its March quarter earnings Thursday. The company's consolidated net profit increased 15% on-year to INR 3.69 billion in the March quarter, while its sales rose 7% on year to INR 30.38 billion. On Thursday, shares of Dabur India closed 0.8% higher at INR 470 on the National Stock Exchange.  End

 

Edited by Saji George Titus

 

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