Dabur sees early demand recovery in Q3 FY26 on GST revision

FMCG major Dabur Ltd on Monday informed stock exchanges that it witnessed an early recovery in demand during the third quarter of FY26, aided by the recent GST rate revision and subsequent trade stabilisation.

In October 2025, the company said distributors and retailers were primarily focused on liquidating higher-priced inventory across channels following the tax changes. However, post stabilisation, consumer sentiment improved across both urban and rural markets, with rural demand continuing to outperform urban demand during the quarter.

The company expects its Home and Personal Care (HPC) segment to deliver double-digit growth, driven by strong performance in hair oils and oral care categories. Key brands such as Dabur Amla, Dabur Almond, Dabur Anmol, Dabur Red Toothpaste and Meswak are likely to record healthy volume-led growth in Q3.

In contrast, the healthcare segment is expected to report low single-digit growth. However, Dabur Honey is projected to grow around 10%, while Honitus and health juices are expected to post over 15% year-on-year growth. The Hajmola franchise and the Ethicals portfolio are likely to see mid single-digit growth, while primary sales of Dabur Chyawanprash are expected to remain muted during the quarter.

The company noted that Chyawanprash demand is expected to pick up momentum in January 2026.

Within the foods and beverages (F&B) segment, the culinary business is expected to record double-digit growth. However, the nectars and drinks portfolio is likely to see muted performance due to adverse seasonality in Q3. Dabur said its focus on the premium ‘Real Activ’ range is yielding results, with 100% Activ juices and coconut water expected to grow over 30% each.

E-commerce, including quick commerce, is expected to grow in strong double digits during the quarter.

Internationally, key markets such as the Middle East and North Africa (MENA), Turkey, Namaste and Bangladesh delivered healthy performance.

Overall, Dabur expects consolidated revenue to grow in the mid single digits, while operating profit and profit after tax are likely to grow faster than revenue. The company added that favourable macroeconomic conditions and recent tax reforms are expected to support a sustained recovery in demand and improvement in its revenue trajectory in the coming quarters.