Dabur India reported a 11.6% rise in Q2FY27 revenue to Rs 3,563 crore, supported by 10.5% growth in its domestic FMCG business and a recovery in international markets. Despite solid top-line performance, EBITDA margins contracted by 68 basis points to 17.7% due to rising input costs and higher operating expenses. The company maintains a double-digit revenue growth guidance for the future.
Dabur India Reports Q2FY27 Results
Net Sales: Rs 3,563 Cr | Net Profit: Rs 506 Cr
Reader Takeaway: Strong revenue growth offset by margin compression due to rising input costs and elevated expenses.
What just happened
Dabur India reported a solid second-quarter performance for FY27, with net sales climbing 11.6% YoY to Rs 3,563 crore. The growth was bolstered by a 10.5% increase in the domestic FMCG sector—aided by 5.5% volume growth—and a 20% recovery in international business operations. Net profit rose to Rs 506 crore, reflecting an 11.7% increase compared to the same period last year.
Why this matters
The results highlight Dabur’s ability to drive volume growth in a competitive FMCG landscape. However, profitability faced pressure as EBITDA margins narrowed by 68 basis points to 17.7%. This contraction was driven by a 59 basis point dip in gross margins due to high input costs and a significant 23.6% jump in operating expenses.
Segment Performance
The Home & Personal Care segment remained the primary contributor, accounting for 55% of the domestic business with 10.9% growth. The Foods and Beverages segment performed exceptionally well, growing 17.4%. Conversely, the Healthcare segment, representing 28% of the domestic business, saw muted growth of 6.9%, partly due to regulatory labelling orders affecting Honey sales.
Management Outlook
Management remains optimistic, reiterating its double-digit revenue growth forecast. The company is prioritizing distribution expansion and premiumisation. Strategic goals include driving 1.5x cost savings through operational efficiency and growing the premium portfolio contribution to 23% by FY30.
Risks to watch
Key headwinds include geopolitical tensions impacting supply chains and inflation, potential demand slowdowns, and the requirement for increased advertisement expenditure to protect market share.
What to track next
Investors should monitor the impact of West Asian geopolitical developments on operating costs and whether the company can successfully pass on or absorb further input cost volatility in the coming quarters.