Dabur, FMCG company based in Ghaziabad expects mid- to high-single-digit revenue growth in the second half, supported by low- to mid-single-digit volume gains.Mohit Malhotra, CEO, Dabur India said, “First half got impacted because of the GST and the inclement weather that we face, and the beverage business got impacted because of that. But second half projection remains what it was, there could be a little upside to it due to the GST reforms, which have come in. We expect overall, mid-single digit, kind of a growth for the full year going forward.”In the July–September quarter of 2025 (Q2 FY26), Dabur India reported revenue of ₹3,191 crore, a profit of ₹444 crore, and margins of 18.4%.
Volume growth came in at 2% versus the anticipated 4–6%. Malhotra attributed the slower volume performance to short-term disruptions caused by the goods and services tax (GST) changes.“GST was a big disruption, although in the long term, it will really benefit the business,” he said, noting that temporary inventory adjustments by distributors and wholesalers led to a softer quarter.He added that these effects should fade in the coming weeks as markets stabilise under the new tax regime.On profitability, Dabur continues to see resilience despite inflationary pressures. Operating margins expanded by 20 basis points year-on-year, aided by price hikes and cost efficiencies. “We expect our operating margin for the full year to be better than last year,” Malhotra added, highlighting that the second half is typically stronger on the margin front.
Among its business verticals, oral care remained a standout performer, growing 14% in the quarter even as competitors like Colgate and Hindustan Unilever saw declines. “Our oral care business has been a star performer for us,” he said, crediting brands such as Dabur Red Paste and Meswak, along with the strong consumer response to the company’s Swadeshi campaign.Dabur gained around 60 basis points in market share, taking its total share to about 16.5%, its highest yet.In contrast, the beverage business faced challenges due to unseasonal weather and GST-led inventory corrections. However, Malhotra said Dabur is working to rejuvenate the category. “The entire Real brand is being revamped with a new facelift,” he said, adding that the company is plugging key price points and expanding its food vertical, which grew 14% in the quarter, driven by strong sales of ghee and edible oils.To strengthen its presence in emerging consumer segments, Dabur has also launched Dabur Ventures, an investment arm with an allocation of ₹500 crore to acquire and invest in digital-first brands across personal care, wellness, and healthcare.“We are evaluating a couple of targets,” Malhotra said, adding that this fund will complement larger M&A opportunities beyond the ₹500-crore allocation.With over ₹7,000 crore in cash reserves, Dabur remains well-positioned to fund both organic and inorganic growth. “You will very soon hear good news from us,” Malhotra hinted, suggesting that new deals may be announced in the near future.Dabur India’s current market capitalisation is ₹87,309 crore. The stock is currently trading at ₹491.70 as of 11:39 am on the NSE and has declined 8% over the last year.Follow our live blog for more updates on Q2 results
