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Dabur India Ltd’s March quarter (Q4FY26) numbers are steady, but not particularly exciting for a company that trades at relatively high valuations. Consolidated revenue grew 7.3% year-on-year to ₹3,038 crore, while full-year FY26 growth stood at 5% to ₹13,193 crore.
Ebitda margin was flat year-on-year at 15.2% in Q4FY26. The quarter reflects that Dabur is still trying to find a stronger growth trajectory. Volume growth stood at 6%. This is lower than peers Marico Ltd and Godrej Consumer Products Ltd that clocked 9% and 8% volume growth, respectively.
On the brighter side, Dabur’s home and personal care (HPC) segment sustained its double-digit growth trajectory. HPC revenue increased by 17% year-on-year in Q4FY26, following 11% growth in Q3. In Q4, hair oils were the standout performer with 28% growth; shampoos grew 20%.
Home care grew 24%, supported by Odonil and Odomos. HPC’s performance helped offset weakness in other segments’ revenue such domestic healthcare (up 3.6%); F&B (up 3.2%); and international business (up 2.5%).
Excluding the glucose portfolio, healthcare grew over 12.5%, led by honey, digestive products, and Ayurvedic juices. Management also highlighted that GST rationalization helped organized players gain share from local unbranded competition, especially in categories like hair oils and healthcare. Rural demand continued to outperform urban markets, although the gap has started narrowing.
Some segments faced temporary issues. For instance, the glucose portfolio declined 24-25% because of unseasonal rains in March, while the nectar beverage business also saw weaker demand. Since beverages and glucose are highly seasonal categories for Dabur, weather volatility makes earnings less predictable.
International business was another weak spot. Revenue growth from overseas markets came in at only 2.5% in rupee terms due to the West Asia war.
Supply chain disruptions, inflation, and lower consumption from expatriates impacted demand across the region. Management also admitted that alternative supply routes from Egypt and Turkey are increasing logistics costs, which could pressure margins further if tensions persist.
Dabur’s management has guided for low-double-digit revenue growth in FY27, higher than its earlier expectation of high-single-digit growth. Around half of this growth is expected to come from price hikes implemented to offset inflation. This means actual underlying volume growth may still remain moderate.
Quick commerce is scaling rapidly, contributing 75% of e-commerce sales with around 50% growth. The management also expects double-digit growth in beverages and glucose if summer conditions remain strong under El Niño forecasts. Oral care is expected to grow in the double digits with new strategies for the Babool and LDM brands. The company expects HPC to grow in double digits to high teen range.
Motilal Oswal Financial Services expects Dabur’s revenue to reach ₹15,434 crore in FY28, growing 8% annually, led by acceleration in the India business. Premiumization, price hikes, and cost-saving may aid gradual margin improvement over the next two years.
According to estimates, Ebitda margins could improve over 19% by FY28, although this still depends heavily on raw material inflation and rural demand recovery. Besides, inflation in crude-linked packaging and raw materials remains elevated, posing a risk to earnings. International operations are exposed to ongoing geopolitical disruptions.
“While execution in oral care, GST benefit-led growth in hair care and weak base should help; normal season (summer/winter) will be key for acceleration in growth for its two large categories (healthcare and F&B), which have been a major drag on overall top line in the past 2-3 years,” said a report by JM Financial Institutional Securities.
Dabur’s shares trade at 42 times JM’s FY27 EPS estimates. “Re-rating to long-term average will be contingent on a more consistent delivery especially on the revenue front,” said the JM report dated 8 May. Dabur’s shares rose around 4% on Friday.
Shubham Dilawari is an equity research professional and financial journalist currently associated with Mint, where he covers markets, companies, and sector trends. He has over two years of combined experience in equity research and financial journalism, which helps him bring practical, real-world insights into his writing.<br><br>He focuses on understanding how businesses work, tracking management commentary, and identifying long-term growth drivers across sectors. His background in stock research and financial analysis allows him to break down earnings, business strategies, and market trends in a clear and easy-to-understand manner.<br><br>Shubham has cleared CFA Level I and holds the NISM Research Analyst certification, reflecting his strong foundation in financial concepts and research practices.<br><br>He believes in keeping financial journalism simple, clear, and useful for readers. His aim is to explain complex financial topics in a way that helps investors and readers make better-informed decisions. He focuses on accuracy, clarity, and relevance in his work.<br><br>Based in India, he closely follows market developments and stays actively engaged with the investing ecosystem.
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