Dabur Anticipates Mid-Single Digit Growth in Q2 Amid GST Rate Cuts
Dabur India expects mid-single digit growth in consolidated revenue for Q2, with operating profit growing in line with revenue. The company anticipates accelerated growth in upcoming quarters despite temporary sales slowdown due to GST rate reductions. Solid growth is projected in oral care, healthcare, and culinary segments. The international business faces challenges, particularly in Nepal. Dabur commits to passing on GST benefits to consumers, expecting this to boost consumption across categories. E-commerce and Modern Trade maintain growth momentum, while key international markets perform well, except Nepal.

*this image is generated using AI for illustrative purposes only.
Dabur India , a leading FMCG company, has released its quarterly update for Q2, revealing insights into its performance and market trends. The company expects a temporary sales slowdown attributed to recent GST rate reductions but remains optimistic about future growth prospects.
Key Highlights
- Dabur projects mid-single digit growth in consolidated revenue for Q2
- Operating profit expected to grow almost in line with revenue
- Anticipates accelerated revenue growth in upcoming quarters
- Solid growth projected in oral care, healthcare, and culinary segments
- International business facing challenges, particularly in Nepal
Impact of GST Rate Cuts
The recent GST reforms have significantly impacted Dabur's business landscape:
Category | Previous GST Rate | New GST Rate | % of India Business |
---|---|---|---|
Key Categories* | 12%/18% | 5% | ~60% |
Total Portfolio | - | 5% | ~85% |
*Includes Oral care, Juices, Hair oils, Shampoo, Digestives, OTC, Branded Ethicals, and Culinary
Dabur has committed to passing on the benefits of reduced GST rates to consumers, which is expected to boost consumption across categories and strengthen demand in both urban and rural markets.
Performance Across Segments
Despite the temporary disruption caused by GST rate cuts, Dabur has observed resilience in various product categories:
- Oral Care: Expected to deliver double-digit growth in both Red Toothpaste and Meswak
- Skin Care: Projected high-single digit growth led by Gulabari and Oxy franchise
- Hair Care: Shampoos anticipated to register high-single digit growth, while Hair Oils may see mid-single digit growth
- Healthcare: Key brands like Dabur Honey, Honitus, Hajmola franchise, and Health Juices likely to register double-digit growth
- F&B: Culinary business expected to record double-digit growth, with strong performance in Oils & Fats
- Beverages: Premium 'Activ' range projected to report robust growth of 30%+, despite overall portfolio impact due to higher-than-expected rainfall and floods in July and August
Channel Performance and International Business
- E-commerce (including Quick commerce) expected to grow in double digits
- Modern Trade maintained its growth momentum
- International business projected to post mid-single digit growth in INR and CC terms
- Key international markets like MENA, Turkey, Namaste, and Bangladesh performing well, while Nepal faces challenges due to political unrest
Looking Ahead
Dabur anticipates that supportive macroeconomic conditions and the recently announced GST rate cuts will strengthen consumption, leading to regained momentum in revenue growth in the coming quarters. The company's focus on passing on GST benefits to consumers and its strong market presence position it well for future growth.
As Dabur navigates through these changes, investors and market watchers will be keen to see how the company's strategies unfold in the evolving FMCG landscape.
Historical Stock Returns for Dabur India
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-0.09% | +0.33% | -9.76% | +9.19% | -13.44% | -5.94% |