New Delhi, May 8: Dabur India Limited reported consolidated revenue growth of 7% year-on-year to Rs 30.4 billion for Q4FY26, while EBITDA increased 8% to Rs 4.6 billion, supported by strong domestic FMCG demand, volume growth, and margin expansion.
India FMCG business delivered 9.5% revenue growth with volume growth of 6%, driven primarily by strong performance in the Home and Personal Care (HPC) segment. Rural markets continued to outperform urban markets by nearly 350 basis points during the quarter.
The HPC business emerged as the key growth driver with categories such as Hair Oils growing 28% year-on-year, Home Care up 24%, and Shampoo rising 20%. The company also witnessed healthy traction in skincare and premium hair care products, aided by market share gains and premiumisation initiatives.
The Food & Beverages segment reported relatively moderate growth of 3.2%, impacted by weather-related disruptions, while Healthcare business growth remained subdued at 3.6% due to weaker glucose demand and seasonal softness in Chyawanprash sales. However, healthcare categories excluding glucose posted healthy double-digit growth led by honey, Honitus, and Ayurvedic juices.
International business growth remained modest at approximately 2.5% year-on-year, affected by supply chain disruptions and elevated logistics costs in the Middle East and North Africa (MENA) region. The company stated that markets such as Turkey, Bangladesh, and the UK continued to perform well.
Dabur’s consolidated gross margins expanded 164 basis points year-on-year to 48.3%, supported by pricing actions, favourable product mix, and operational efficiencies. EBITDA margin remained largely stable at 15.2% due to higher operating expenses.
Management indicated a positive outlook for FY27, guiding for high single-digit to low double-digit growth, supported by pricing actions, premiumisation, and continued market share gains. The company has already implemented around 4% price hikes to offset elevated raw material inflation and maintain profitability amid rising input and packaging costs.
Analysts maintained an “ADD” rating on the stock with a revised target price of Rs 523 for June 2027, citing improving operating momentum, healthy rural demand, and continued investments in premium and digital categories as key growth drivers.
