Domestic recovery offsets global disruption; margins set to beat revenue growth
Dabur India said its domestic business remained resilient in the March quarter, helping cushion the impact of disruptions in overseas markets, particularly the Middle East, where geopolitical tensions dented demand and strained supply chains.
In its Q4 FY26 business update, the FMCG major indicated that India demand is recovering sequentially, with its core FMCG portfolio expected to post high-single digit growth, according to regulatory filing.
The home and personal care segment continued to lead, with mid-teens growth expected, driven by strong traction in hair oils, shampoos and home care products. Key brands across these categories delivered volume-led growth, with several segments growing upwards of 20 per cent and gaining market share.
The healthcare business, however, saw a mixed quarter. While products such as honey, digestive and immunity portfolios posted double-digit growth, overall growth remained muted in low single digits due to weather-related disruptions impacting glucose sales.
The foods and beverages segment also showed gradual recovery, with low-single digit growth. High-growth pockets such as juices and coconut water continued to expand at over 20 per cent, though out-of-home consumption was hit by unseasonal rains.
Internationally, Dabur flagged pressure in the Middle East due to the ongoing US–Israel–Iran tensions. However, markets like Turkey, Bangladesh and the UK continued to post double-digit constant currency growth, limiting the overall drag. The company expects its international business to grow in low single digits in rupee terms.
Overall, Dabur said consolidated revenue is likely to grow in mid-single digits, with operating profit expected to outpace revenue growth.The company added that it expects a gradual recovery in domestic consumption going ahead, while remaining cautious on geopolitical risks.
