Target: ₹590
CMP: ₹520.60
Dabur released its business update for Q3-FY26. Dabur has seen a mid-single digit consolidated revenue growth (BNPPe: 8 per cent). Dabur expects operating profit and profit after tax to grow ahead of revenue. Within India business, HPC segment revenue grew in double digits, while healthcare is expected to witness a sequential improvement in the growth trajectory, reporting low-single digit growth. International business is expected to post near double digit growth in INR terms.
Dabur’s numbers are weaker than what we are building in. Dabur had guided to mid-to-high single digit revenue growth in H2-FY26 and its growth is at the lower end of the guidance range. We have built in 8 per cent sales growth in Q3-FY26 factoring in a positive impact of the GST rate cut; price hikes and favourable base.
However, Dabur seems to have missed our estimates due to weakness in healthcare and adverse seasonality in beverages. At a category level, home and personal care growth seems ahead of our estimates while healthcare and beverages are below. Dabur mentioned that it has seen operating profit growth ahead of sales growth but it is likely to fall short of our operating profit growth assumption of 13 per cent y-o-y.
Upside risks: Stronger-than-expected rural demand recovery and a pick-up in sales growth in some of the laggard categories, such as hair oil and beverages and favourable resolution of the Namaste litigation. Downside: Sustained weakness in the hair-oil, health supplements and beverages categories.
Published on January 7, 2026
