FMCG major Dabur India Ltd, on Monday (January 5) said it saw early signs of demand recovery during the quarter ended December 31, 2025 (Q3FY26), aided by GST rate revisions and improving consumer sentiment, even as distributors and retailers focused on liquidating higher-priced inventory during October.
In its quarterly business update, the company said after trade stabilisation, consumer sentiment improved in both urban and rural markets, with rural demand continuing to outperform urban demand during the quarter.
Home & personal care to drive growth
Within the India business, Dabur said it expects the home & personal care segment to grow in double digits, driven by strong performance in the hair oils and oral care categories. Key brands expected to record healthy, volume-led growth include the Dabur Amla franchise, Dabur Almond, Dabur Anmol, Dabur Red Toothpaste and Meswak, with a majority of the portfolio continuing to outpace category growth and likely to gain market share.
Healthcare shows sequential improvement
The exchange filing stated that the healthcare business is expected to see a sequential improvement in growth, supported by nearly 10% growth in Dabur Honey and over 15% year-on-year growth in Honitus and Health Juices. While the Hajmola franchise and the ethicals portfolio are likely to post mid-single-digit growth, primary sales of Dabur Chyawanprash are expected to remain muted, though secondary sales have stayed positive.
“Aided by an extended winter, we expect Chyawanprash to gain momentum in the month of January 2026,” the company said in the exchange filing, adding that overall healthcare growth is likely to be in the low single digits.
Foods & beverages and channel performance
In the foods and beverages segment, Dabur said the culinary business is expected to deliver double-digit growth. The beverages portfolio, including nectars and drinks, is likely to see muted performance due to adverse seasonality. The beverages portfolio also recorded market share gains during the quarter.
On distribution, Dabur said organised trade remains strong, while e-commerce, including quick commerce, is expected to grow in strong double digits.
International business outlook and overall guidance
In the international division, key markets such as MENA (Middle East and North Africa), Turkey, Bangladesh and the US Namaste business delivered a healthy performance, with overall international revenue expected to grow at near double digits in rupee terms.
Overall, Dabur said it expects consolidated revenue to grow in the mid-single digits, with operating profit and profit after tax growing faster than revenue, adding that favourable macroeconomic conditions and recent tax reforms should support a sustained recovery in demand in the coming quarters.
Shares of Dabur India Ltd ended lower on Monday, January 5, by 0.34% at ₹520.80, on the NSE.
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