Dabur Q2 profit rises 11.7% to Rs 505.5 crore as premium brands lead

Dabur India reported an 11.7 per cent rise in consolidated net profit to Rs 505.5 crore for the second quarter of FY27, up from Rs 452.6 crore a year earlier. It is the fourth consecutive quarter of double-digit profit growth for the maker of Dabur Red toothpaste, Real juices and Hajmola. Consolidated revenue from operations climbed 11.6 per cent to Rs 3,563.1 crore from Rs 3,191.3 crore.

Ebitda, including other income, rose 10.5 per cent to Rs 804.3 crore from Rs 728.2 crore in Q2FY26. Profit and revenue growing at a similar pace suggests the company is holding its margins reasonably well, even as CEO Herjit S. Bhalla pointed to geopolitical uncertainty and elevated input costs.

The quality of growth is the part investors will like. The India FMCG business grew 10.7 per cent, backed by 5.5 per cent underlying volume growth, so the gain did not come from price increases alone. Premium brands grew four times faster than the mainstream range and now account for 20 per cent of domestic business, a sign that shoppers are still trading up in select categories.

Within home and personal care, which grew 10.9 per cent, shampoos, hair oils and home care posted double-digit expansion at the high end. Skin and salon grew at a high single-digit rate and oral care at a mid-single-digit rate. Healthcare rose 6.9 per cent, with digestives, over-the-counter products and ethical businesses growing strongly. Foods and beverages expanded 17.4 per cent, led by foods, while beverages saw a sequential recovery.

Overseas, Dabur's international business grew 20 per cent in rupee terms and 19.4 per cent in constant currency. Bangladesh, Egypt, Sub-Saharan Africa and Turkey were the main contributors, giving the group a growth engine that is less tied to the domestic consumption cycle.

Another welcome signal came from general trade, the network of neighbourhood stores that has been under pressure from quick commerce and modern retail. The channel grew at a mid-to-high single-digit rate, which the company credited partly to Project Saksham, its initiative to strengthen distribution. Bhalla called the quarter a "marked resurgence" for the channel.

Shareholders also get a payout. The board declared an interim dividend of Rs 3.50 per share, or 350 per cent, totalling Rs 620.88 crore. Chairman Mohit Burman said the dividend continues the company's payout policy. For Dalal Street, the takeaways are volume-led growth, premiumisation and a recovering traditional trade channel, all of which bode well for the festive-season demand outlook.

Source: BW Businessworld

Related: Sajjan Jindal, Suvendu Adhikari discuss Salboni power expansion at Nabanna · Air India CEO Tewolde Gebremariam Eyes More Wide-Body Jets to Win Back Market Share