Dabur India anticipates high-teens growth in its global business for Q2FY27, driven by double-digit expansion in key markets including Egypt, Turkey, USA, Bangladesh, and the UK. This outlook persists despite ongoing challenges in the Middle East region.

Segment Performance and Guidance

The company’s domestic segments are also expected to perform robustly. The Food and Beverages business is projected to record mid-teens growth, while the Healthcare business is anticipated to see mid-single-digit growth. Overall, Dabur expects Profit After Tax to continue rising in double digits.

Key market highlights for the global division include:

• Egypt, Turkey, USA, Bangladesh, UK: Strong double-digit growth in INR terms.
• Middle East: Continued operational challenges noted.

At a consolidated level, revenues are expected to record double-digit growth. The India FMCG business sustained its momentum and is expected to accelerate to double-digit growth, marking its strongest performance in recent quarters. Home & Personal Care (HPC) is expected to record double-digit growth, with Hair Oils and Shampoos delivering high-teens growth. Oral care is expected to post mid-single-digit growth on a high base. Home care is expected to register high-single-digit growth, while Skin care is expected to grow at double-digit rates.

In the Healthcare segment, OTC & Ethicals is expected to register sequential recovery with early-teens growth. Digestives is expected to continue its strong momentum and post high-teens growth. Health supplements were impacted by the ongoing transition to refreshed packaging and labels across the portfolio, resulting in a temporary drag on performance during the quarter.

The Food and Beverages business is expected to record mid-teens growth. The Foods business is expected to continue its robust growth momentum with strong double-digit growth. The Beverages portfolio registered sequential recovery and is likely to grow in the early teens, driven by expanded offerings across formats and price points and a favourable season.

Regarding distribution channels, emerging channels comprising E-commerce and Quick commerce are expected to report strong growth momentum led by continued investments and focus on an omnichannel distribution approach. 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, led by continued efforts under Project Saksham.

Margin Dynamics

While revenue growth remains steady across FMCG, HPC, and Food & Beverages segments, operating margins are currently affected by inflation. The company reports steady demand trends for the quarter. 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.

What the Numbers Show

The divergence between strong top-line growth in global markets and margin compression due to inflation highlights a mixed performance landscape. While volume and revenue drivers remain positive in key international territories, cost pressures are impacting profitability metrics. The HPC segment's fourth consecutive quarter of double-digit growth contrasts with the temporary drag in Health supplements due to packaging transitions, indicating that category-specific execution issues can dampen broader segment performance even when underlying demand is healthy.

Dabur India uploaded the National Company Law Tribunal (NCLT) order sanctioning its merger with Sesa Care Private Limited to stock exchanges on September 26, 2026. The NCLT pronounced the order on September 24, 2026, marking a key regulatory milestone for the integration of the premium Ayurvedic hair care brand.

Merger details and timeline

The approval finalizes a transaction first announced in October 2024. Under the scheme, Sesa Care will be merged into Dabur India under Sections 230 to 232 of the Companies Act, 2013. The appointed date for the scheme is April 1, 2026.

The scheme had previously received approvals from Dabur India's equity shareholders and unsecured creditors at meetings convened on May 2, 2026. The merger will become effective upon completion of necessary statutory filings and other conditions stipulated under the scheme.

Strategic significance

Sesa Care is a leading brand in the Ayurvedic hair care market with strong brand equity. The integration complements Dabur India's existing portfolio and strengthens its presence in the hair care category. Dabur India Global Chief Executive Officer Mohit Malhotra stated that the NCLT approval is an important milestone in their journey with Sesa Care, noting significant potential in building the brand into a larger entity.

Dabur India Executive Director and Group Head of Corporate Strategy Abhinav Dhall added that the integration aligns with the company's long-term strategy to tap newer growth opportunities. He highlighted plans to leverage Dabur India's extensive distribution network, category expertise, and access to international markets to expand Sesa Care's reach and unlock revenue and cost synergies.

Background of the transaction

As part of the initial transaction structure, Dabur India had acquired 51% of the paid-up Cumulative Redeemable Preference Shares (CRPS) of Sesa Care from its existing shareholder, True North. The NCLT's recent order paves the way for the full integration of the business, subject to the completion of remaining formalities.