Dabur India Ltd. on Monday announced early signs of demand recovery in the third quarter ended December 31, 2025 (Q3 FY26), with the home and personal care segment poised for double-digit growth.
Demand Signals Emerge in Q3
The fast-moving consumer goods major stated that consumer sentiment improved across urban and rural markets following trade stabilization. Rural demand notably outperformed urban demand during the quarter. This recovery was aided by GST rate revisions and an improving consumer outlook, even as distributors worked through higher-priced inventory earlier in the period.
Home and Personal Care Leads Growth
The home and personal care segment is expected to drive significant growth, projecting double-digit expansion. Key categories like hair oils and oral care are anticipated to perform strongly. Brands such as Dabur Amla, Dabur Almond, Dabur Red Toothpaste, and Meswak are expected to record healthy, volume-led growth, likely gaining market share.
Healthcare Sees Sequential Gain
Dabur's healthcare business is forecast to see a sequential improvement in its growth trajectory. Dabur Honey is projected to grow nearly 10%, while Honitus and Health Juices are expected to deliver over 15% year-on-year growth. The Hajmola franchise and ethical portfolio are likely to post mid-single-digit growth. Primary sales of Dabur Chyawanprash are expected to remain muted, though secondary sales show positive trends.
Foods and Distribution Channels
Within the foods and beverages sector, the culinary business is expected to achieve double-digit growth. However, the beverages portfolio might experience muted performance due to seasonal factors, despite market share gains. Organized trade channels remain robust, and e-commerce, including quick commerce, is set for strong double-digit expansion.
International Markets Show Strength
Internationally, key markets including the Middle East and North Africa (MENA), Turkey, Bangladesh, and the US Namaste business delivered healthy performance. Overall international revenue is anticipated to grow at near double digits in rupee terms.
Outlook and Stock Performance
Dabur projects consolidated revenue growth in the mid-single digits for the quarter. Operating profit and profit after tax are expected to grow faster than revenue. Favorable macroeconomic conditions and recent tax reforms are seen as supportive factors for sustained demand recovery in upcoming quarters. Shares of Dabur India Ltd. closed 0.34% lower at ₹520.80 on the NSE on Monday.