Dabur India reported a strong Q2 FY27 performance with revenue at Rs 3,563 crore and a net profit of Rs 505 crore, both up over 11% YoY. The company declared an interim dividend of Rs 3.50 per share. Key growth drivers included double-digit expansion in the International Business, strong Food & Beverage sales, and resilient volume growth in India.
Dabur India Q2 Profit Rises 11.7% to Rs 505 Crore
Consolidated revenue stood at Rs 3,563 crore, reflecting an 11.6% year-on-year increase.
Net profit for the quarter climbed 11.7% to Rs 505 crore, marking four consecutive quarters of double-digit profit growth.
Reader Takeaway: Strong volume-led growth and international business expansion drive profits, though input-cost pressures remain a key challenge to monitor.
What just happened
Dabur India has announced its financial results for the second quarter of FY27. The company maintained a steady growth trajectory, with consolidated revenue reaching Rs 3,563 crore. This represents the second consecutive quarter of double-digit revenue growth. Net profit for the same period rose to Rs 505 crore. As a reward to shareholders, the board has approved an interim dividend of Rs 3.50 per share, amounting to a total payout of Rs 620.88 crore.
Why this matters
These results underscore the strength of Dabur's core portfolio despite a complex macroeconomic backdrop. The India FMCG business grew by 10.7%, supported by a healthy 5.5% underlying volume growth. Notably, the international segment outperformed, recording 20% growth in rupee terms, with significant contributions from markets in Egypt, Turkey, and Sub-Saharan Africa. The company also highlighted a shift toward premiumisation, where premium brands are currently growing four times faster than regular offerings.
Business Performance
The Food & Beverages (F&B) segment emerged as a key performer, growing 17.4% due to sequential recovery in beverages and strong food sales. The Home & Personal Care segment also saw robust growth of 10.9%, driven by strong demand in the hair care and home care categories. Meanwhile, the Healthcare segment grew by 6.9%, with segments like Digestives and OTC showing significant momentum.
Risks to watch
Management acknowledged that the business continues to face hurdles from geopolitical uncertainty and persistent input-cost pressures. While current volumes are healthy, investors should watch whether the company can maintain these margins if inflationary pressures on raw materials increase in the coming quarters.
What to track next
Investors should monitor the sustainability of the F&B category recovery and the performance of the General Trade channel, which is currently benefiting from the 'Project Saksham' initiative. Future management commentary on managing supply chain costs in volatile geopolitical environments will be critical.