Dabur India Q2 Update: GST reforms, portfolio resilience drive momentum

Dabur India has released a preliminary update on its performance and demand trends for the quarter ended September 30, 2025 (Q2 FY26), highlighting that the recent GST reforms implemented by the Government represent a significant step towards improving affordability and enhancing purchasing power.

Following this, the shares of Dabur India were trading 1% higher at Rs 498 on the BSE.

Dabur stated that categories such as oral care, juices, hair oils, shampoos, digestives, OTC, branded ethicals, and culinary—which together comprise approximately 60% of Dabur’s India business—are set to benefit from a reduction in GST rates from 12%/18% to 5%.

As of the reporting quarter, ~85% of Dabur’s portfolio is now taxed at 5%, which the company views as a key positive. Dabur reiterated its commitment to passing on the benefits of the reduced GST rates to consumers.

However, the GST Council’s announcement in September 2025 led to short-term disruption, as consumers deferred purchases to benefit from lower MRPs and distributors worked to clear higher-priced inventory.

This impacted sales during the month of September and, by extension, Q2 FY26. Despite this, Dabur’s non-GST impacted brands such as Dabur Honey, Anmol Coconut Oil, Gulabari, and Hajmola Jeera performed well. The company stated that retail offtakes remained resilient, allowing it to sustain market share gains in 90% of its portfolio.In the Home & Personal Care segment, the Oral Care portfolio continued its strong growth trajectory and is expected to deliver double-digit growth, driven by products like Red Toothpaste and Meswak, supported by on-ground execution and marketing efforts.The Skin Care portfolio is anticipated to grow in high single digits, led by brands such as Gulabari and Oxy. In Hair Care, Shampoos are expected to post high-single digit growth, led by Vatika, while Hair Oils are expected to see mid-single digit growth. The Odonil franchise within Home Care also performed well.

In the Healthcare segment, brands such as Dabur Honey, Honitus, the Hajmola franchise, and Health Juices are expected to report double-digit growth, supported by strong product portfolios.

The Foods & Beverages segment, particularly Culinary, is also expected to record double-digit growth, with strong performance in Oils & Fats. The Beverages business reported robust growth of 30%+, driven by Activ juices and Coconut water.

However, the overall beverage portfolio was impacted by higher-than-expected rainfall and floods in July and August.

Across channels, E-commerce (including Quick Commerce) is projected to grow in double digits, while Modern Trade maintained its growth trajectory.

In the international business, key regions such as MENA, Turkey, Namaste, and Bangladesh performed well, while Nepal was adversely affected by political unrest. The overall international business is expected to post mid-single digit growth in both INR and constant currency terms.

For the quarter, Dabur expects consolidated revenue to grow in mid-single digits, with operating profit growth broadly in line with revenue.

The company concluded by noting that with supportive macroeconomic conditions and the recent GST rate cuts, consumption is expected to strengthen, and revenue growth is anticipated to regain momentum in the upcoming quarters.

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