Shares of Dabur India declined over 2% on Tuesday, January 6, even as the FMCG major flagged early signs of demand recovery during the quarter ended December 31, 2025 (Q3FY26). The stock was trading at Rs 508.30, down 2.48%, in morning trade on the NSE.
In its quarterly business update, Dabur said demand trends showed improvement after an initial phase of trade stabilisation, supported by GST rate revisions and better consumer sentiment. However, the company noted that distributors and retailers focused on liquidating higher-priced inventory during October, which weighed on near-term momentum.
The company added that consumer sentiment improved across both urban and rural markets, with rural demand continuing to outperform urban demand during the quarter.
Home & personal care to drive growth
Within the India business, Dabur expects the home and personal care segment to record double-digit growth, led 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 expected to deliver healthy, volume-led growth, with a majority of the portfolio likely to outpace category growth and gain market share.
Healthcare business shows sequential improvement
Dabur said its healthcare segment is expected to witness sequential improvement, supported by nearly 10% growth in Dabur Honey and over 15% year-on-year growth in Honitus and Health Juices. The Hajmola franchise and the ethicals portfolio are likely to post mid-single-digit growth.
Primary sales of Dabur Chyawanprash are expected to remain muted during the quarter, though secondary sales stayed positive. The company said an extended winter could help Chyawanprash gain momentum in January 2026, with overall healthcare growth expected to remain in the low single digits.
Foods, beverages and channels
In the foods and beverages segment, the culinary business is expected to deliver double-digit growth, while the beverages portfolio, including nectars and drinks, is likely to see muted performance due to adverse seasonality, despite recording market share gains.
On the distribution front, organised trade remained strong, while e-commerce and quick commerce are expected to grow in strong double digits during the quarter.
International business and overall outlook
Dabur said its international business delivered a healthy performance, with key markets such as MENA, Turkey, Bangladesh, and the US Namaste business contributing to growth. International revenue is expected to grow at near double digits in rupee terms.
Overall, the company expects consolidated revenue growth in the mid-single digits, with operating profit and profit after tax growing faster than revenue, supported by favourable macroeconomic conditions and recent tax reforms.