Consolidated revenue for the quarter stood at Rs 3,191 crore, reflecting a 5.4% YoY growth. Operating profit rose 6.4% during the quarter, outpacing topline growth. The company attributed the performance to the strength of its brands and improved execution.
During the quarter, Dabur launched a Rs 500 crore investment platform named Dabur Ventures. In its domestic business, steady growth was seen across key categories such as health supplements, toothpaste, hair care, skin care, and home care. The toothpaste segment, led by strong demand for Dabur Red Paste and Meswak, recorded a 14.3% growth.
The 100% fruit juice portfolio under the Real Activ brand surged over 45%, while the foods portfolio grew by over 14%. Shampoo sales rose over 9%, hair oils grew by over 5%, the skin & salon portfolio expanded to around 8%, and home care reported growth of over 5%.
In terms of market share, Real Nectars gained 115 basis points (bps), the 100% juices portfolio gained 1,074 bps, hair oils rose 232 bps, Chyawanprash increased 234 bps, and air fresheners gained 127 bps.
On the international front, Dabur’s global business grew 7.7% YoY in Q2. Regionally, Dubai posted over 17% growth, the UK rose about 48%, Bangladesh and the US each grew around 16%, and Turkey delivered over 18% growth.Additionally, the company’s Board of Directors declared an interim dividend of 275% for FY2025-26 — amounting to Rs 2.75 per share and aggregating to a total payout of Rs 487.76 crore.
Should you buy, sell, or hold Dabur India shares?
Goldman Sachs | Neutral | Target price: Rs 500
Goldman Sachs maintained a Neutral rating on Dabur India with a target price of Rs 500. The brokerage noted that Q2FY26 revenue rose 5.4% YoY, while EBITDA increased 6.4% YoY, leading to an EBITDA margin of 18.4%.
India revenue grew 5.7% YoY, supported by 2% volume growth. Category-wise, the Home and Personal Care (HPC) segment grew 8.9%, healthcare rose 1.3%, food and beverages (F&B) expanded 1.7%, and toothpaste surged 14.3% YoY.
Management guided for mid- to high-single-digit revenue growth in the second half of the year.
Elara | Reduce | Target price: Rs 508
Elara maintained a Reduce rating on Dabur India with a target price of Rs 508. The brokerage said revenue was impacted by the GST transition, which had an estimated effect of 3–4%. However, rural growth outpaced urban markets, rising 7% YoY.
Dabur’s international business grew 5.5% in constant currency terms, though challenges in Nepal and tariff-related issues weighed on overall growth. Elara expects a Q3 recovery driven by GST normalization and winter inventory restocking.
The EBITDA margin for the quarter remained stable at 18.4%. Elara maintained its Reduce stance due to limited near-term catalysts.
Motilal Oswal | Neutral | Target price: Rs 525
Motilal Oswal has downgraded Dabur from ‘Buy’ to ‘Neutral’ with a revised target price of Rs 525.
The downgrade follows a slower-than-expected turnaround and weak execution by the company. While Motilal Oswal remains optimistic about a broader consumption recovery aided by favorable macroeconomic trends and GST reforms, it noted that Dabur’s muted sales performance over the past two years has dampened near-term confidence. After just 1.3% revenue growth in FY25, Dabur saw a modest improvement to 3% in 1HFY26. The management is now guiding for mid- to high-single-digit growth in 2HFY26, supported by similar volume growth.
Motilal Oswal has also revised its EPS estimates downward by 2% for FY26 and 3% each for FY27 and FY28.
Also read: Ashish Kacholia invests Rs 10 cr in this smallcap co via preferential issue, stock zooms 5%
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
