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, with rural and premium segments outpacing others.

• GST reforms and rate reductions led to temporary trade disruptions but are expected to boost long-term demand and affordability, with benefits passed to consumers.

• Operational agility enabled timely price reductions, market share gains, and premiumization through innovation and digital-first investments.

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

• Board approved unaudited results and declared an interim dividend of ₹2.75 per share for FY26.

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.

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

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

• Debt-equity ratio improved to 0.12 in Q2 FY26 from 0.17 in Q2 FY25.

Outlook and guidance

• Guidance for mid- to high-single-digit revenue growth in H2, with margin growth expected to outpace sales growth for the full year.

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

• Rural demand and premiumization in urban markets identified as key growth drivers.

• Interim dividend of ₹2.75 per share reflects confidence in ongoing performance.