Q2 FY27 update: double-digit revenue growth expected, operating margins hit by inflation

Q2 FY27 update — business trends, ahead of results.

Tue 6 Oct 2026

Consolidated revenue

seen in double digits

India FMCG growth

to accelerate to double-digit growth

PAT

expected to grow double-digit

What this update is

• The company has issued a quarterly update on the performance and demand trends witnessed during the quarter ended September 30, 2026 (Q2 FY27).
• It is a trend update. Detailed financial results and the earnings presentation will follow once the Board of Directors approves the consolidated and standalone financial results for the quarter.
• The company said demand conditions remained steady despite a volatile operating environment marked by renewed geopolitical tensions in the Middle East, persistent inflationary pressures across various commodities and deficit rainfall. It remains optimistic about further acceleration in consumption, supported by the upcoming festive season, while monitoring the geopolitical and inflationary environment.

Growth expectations stated in the update

• Consolidated revenue: expected to record double-digit growth.
• India FMCG business: expected to accelerate to double-digit growth, described as its strongest performance in recent quarters.
• Home & Personal Care: expected to record double-digit growth. Hair Oils and Shampoos are expected to deliver high-teens growth, marking the fourth consecutive quarter of double-digit growth. Oral care is expected to post mid-single-digit growth on a high base; home care high-single-digit; skin care double-digit.
• Healthcare: expected to record mid-single-digit growth. OTC & Ethicals is expected to register sequential recovery with early-teens growth; digestives expected to post high-teens growth. Health supplements were impacted by the ongoing transition to refreshed packaging and labels across the portfolio, a temporary drag during the quarter.
• Food and Beverages: expected to record mid-teens growth, with foods expected to continue strong double-digit growth and beverages likely to grow in the early teens.
• International business: expected to post high-teens growth in INR terms despite severe headwinds in the Middle East, with Egypt, Turkey, USA, Bangladesh and UK each expected to record strong double-digit growth in INR terms.

Distribution channels

• Emerging channels comprising e-commerce and quick commerce are expected to report strong growth momentum.
• Modern Trade continues to grow at double digits.
• General Trade continued to grow across both urban and rural markets, with rural continuing to outpace urban.

Margins and profit

• Inflationary pressures continue to remain elevated, particularly in HPC and OTC & Ethicals.
• Operating margins were impacted by inflationary pressures during the quarter, partly offset by calibrated price increases and ongoing cost-saving initiatives.
• Profit after tax is expected to continue to grow at a double-digit level.

Scale of the business, as stated

• 141-year legacy; 8 out of every 10 Indian households use at least one product.
• Portfolio includes three INR 1000 crore brands — Dabur Amla, Dabur Red Toothpaste and Real — alongside three INR 500 crore brands and 16 brands in the INR 100-500 crore range.
• Second most distributed FMCG company with 8.5 million retail outlets reach.
• In FY 2025-26, consolidated revenue from operations was INR 13,192 crore and consolidated profit after tax was INR 1,895 crore.

Points to keep in mind

• The update uses expectation and forward-looking language. The company states that some statements may be forward looking and that actual results might differ substantially from those expressed or implied.
• It also states that the statements and financials disclosed may differ from the reported financials to reflect real business financial performance.

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