Target: ₹590
CMP: ₹520.60
Dabur has released its business update for Q3-FY26. Dabur recorded mid-single-digit consolidated revenue growth (BNPPe: 8 percent). Dabur expects operating profit and profit after tax to grow faster than sales. In India business, HPC segment revenue grew at double digits while healthcare is expected to see sequential improvement in growth trajectory and recorded low single digit growth. International business is expected to witness near double-digit growth in INR terms.
Dabur’s numbers are weaker than what we are counting on. Dabur had forecast mid- to high-single-digit revenue growth in the second half of fiscal 2026, and its growth is at the lower end of the forecast range. We achieved 8 per cent revenue growth in the third quarter of FY2026, taking into account the positive impact of GST rate reduction. Price increases and favorable basis.
However, Dabur appears to have missed our estimates due to weakness in healthcare and unfavorable seasonality in beverages. At the category level, growth in home and personal care appears to be above our estimates, while growth in healthcare and beverages appears to be below. Dabur mentioned that operating profit growth was above revenue growth, but it likely fell short of our assumption of 13 percent year-on-year operating profit growth.
Upside risks: Stronger than expected recovery in rural demand and an increase in sales growth in some of the laggard categories such as hair oil and beverages, as well as a positive resolution of the Namaste litigation. Disadvantage: Continued weakness in the hair oil, supplements and beverage categories.
Published on January 7, 2026