Dabur Eyes Global Gains as Urban FMCG Demand Rebounds, But Q1 Margins Stay Tight

Dabur India Ltd is cautiously optimistic as it enters FY26, signaling a gradual recovery in India’s FMCG sector—especially in urban markets—while its international business continues to deliver robust double-digit growth. However, the company has flagged that Q1 FY26 operating profit growth will trail revenue, due to elevated brand investments and inflationary pressures.

 

Key Highlights:

 

- Urban Volume Uptick: After four quarters of rural dominance, urban demand is showing signs of life. Dabur expects this trend to accelerate in H2 FY26, aided by moderating inflation and premiumisation in metro markets.

 

- Q1 Revenue Outlook: Consolidated revenue for Q1 is projected to grow in the low single digits, with India business seeing mid-single-digit volume growth. The Home & Personal Care and Healthcare segments are expected to post high single-digit value growth.

 

- International Business Surge: Dabur’s overseas operations—especially in MENA, Egypt, and Bangladesh—are expected to clock double-digit growth in constant currency terms, despite currency headwinds in Turkey and Egypt.

 

- Margin Watch: While gross margins may expand due to cost-saving initiatives and price rollovers, operating profit growth will lag as the company ramps up advertising and promotional (A&P) spends to defend market share.

 

- Strategic Focus: Dabur is doubling down on distribution expansion, modern trade, and quick commerce, while also investing in ayurvedic innovation and digital-first formats to capture Gen Z and millennial cohorts.

 

With a normal monsoon forecast and easing input costs, Dabur is betting on a stronger second half to regain full momentum.

 

Source: Business Standard, Economic Times, Dabur Investor Update