Dabur India (DABUR) Q2 25/26 earnings summary

Executive summary

• Consolidated revenue grew 5.4% year-over-year, with India FMCG up 5.7% and international business up 7.7% in INR terms; 95% of the portfolio gained market share in Q2 FY26, with rural and premium products outpacing core offerings.

• GST reform led to 86% of the portfolio at 5% GST, with 56%-66% benefiting from rate reduction, causing short-term trade disruption but expected to boost long-term demand and consumption.

• Operational agility enabled timely price reductions and effective benefit transmission to consumers, with benefits passed on to consumers.

• Heavy rainfall and floods impacted beverage consumption, but operating margins expanded despite inflation and input cost escalation.

• Board approved unaudited consolidated and standalone financial results for the quarter and half year ended September 30, 2025, and declared an interim dividend of ₹2.75 per share for FY 2025-26.

Financial highlights

• Consolidated revenue for Q2 FY26 was ₹3,191.32 crore, up from ₹3,028.59 crore in Q2 FY25; H1 FY26 revenue was ₹6,595.90 crore, up from ₹6,377.70 crore in H1 FY25.

• Operating profit increased 6.4% and PAT rose 6.5% year-over-year, with a 20 bps margin expansion; net profit for Q2 FY26 was ₹444.79 crore, up from ₹417.52 crore in Q2 FY25.

• Gross margin improved by 20 basis points year-over-year; operating margin for H1 at approximately 19%.

• Dividend per share declared at INR 2.75 (275%), totaling INR 487.8 crore as interim dividend.

• Final dividend of ₹5.25 per share for FY25 (₹931.19 crore) paid during the quarter.

Outlook and guidance

• Guidance for mid- to high-single-digit revenue growth in H2, backed by low- to mid-single-digit volume growth.

• Optimism for sequential demand recovery, supported by favorable macros, GST rate cuts, and a strong winter season.

• GST reforms and rate reductions are expected to drive future consumption, especially in juices and other key categories.

• Interim dividend of ₹2.75 per share (₹487.76 crore) declared for FY26, reflecting confidence in ongoing performance.