Unseasonal rain dents beverage sales; Dabur projects low single-digit Q1 growth

Dabur India Ltd has shared a business update for the quarter ended June 30, 2025 (Q1 FY26), ahead of its detailed financial results. The consolidated and standalone results will be released after approval by the company’s Board of Directors.

The company noted a sequential recovery in the Indian FMCG sector during the quarter, particularly with volume growth in urban markets. Dabur’s Home and Personal Care (HPC) segment is expected to show strong performance, driven by categories such as oral care, home care, and skin care. Flagship brands including Dabur Red Toothpaste, Odonil, Odomos, and Gulabari are expected to post solid growth and gain market share.

In the healthcare segment, brands like Dabur Honey, Hajmola, Dabur Honitus, and Dabur Health Juices are projected to post double-digit growth, with Dabur Honitus expected to grow over 40%.

Organised trade channels—including e-commerce, quick commerce, and modern trade—maintained growth momentum during the quarter.

The company’s international business is expected to post double-digit constant currency growth, supported by markets such as MENA, Turkey, Bangladesh, and the US (Namaste business).

However, the beverages portfolio was impacted by unseasonal rains and a shorter summer season. While overall beverage performance declined, products such as Activ Juices and Activ Coconut Water recorded mid-teen growth. Dabur noted that it will increase focus on its Activ portfolio to align with evolving consumer preferences and reduce seasonality in its beverages category.

Due to the beverage segment decline, Dabur expects its consolidated revenue for the quarter to grow in low single digits. Consolidated operating profit growth is projected to marginally lag revenue growth.

Looking ahead, the company cited favourable macroeconomic conditions—including an above-average monsoon, strong agricultural output, easing inflation, and government consumption-led measures—as supportive of revenue acceleration in the coming quarters. Dabur also reaffirmed its focus on brand investment, distribution expansion, backend strengthening, and operational efficiency to drive profitable growth through the remainder of the year.