Dabur Q2 profit up 12%, margins under pressure

MUMBAI: Consumer goods maker Dabur India's net profit for the September quarter rose 12% year on year, while volume growth edged up to 5.5% from 5% a year ago.

The company also announced the exit of global chief executive Mohit Malhotra, who is set to take up an overseas leadership role.

The maker of Dabur Honey, Vatika hair oil, toothpaste, Odonil home-care products and Réal juices reported consolidated revenue of ₹3,563 crore in Q2, up 11.6% year-on-year. Net profit stood at ₹498.57 crore.

Dabur's operating profit stood at ₹632.5 crore, up 7.5% year-on-year. The company reported an operating margin of 17.8%, down 60 basis points from a year ago.

Also Read | Marico raises growth targets after strong Q2

The company also cut its advertising and promotion expenses by 3% to ₹226.6 crore.

Premium brands grew four times the pace of regular brands and account for a 20% share of the domestic business, the company said. International businesses grew 20% in rupee terms in Q2, supported by strong performances across several key markets like Bangladesh, Egypt, Sub-Saharan Africa and Turkey.

Honey sales declined mid-single digit on a high base, partly due to temporary disruption in trade sentiment following a food-labeling order by the Food Safety and Standards Authority of India (FSSAI).

On 3 August, the regulator issued a prohibition order against Dabur over the use of “100%” claims on products, including honey. It directed the company to stop sales of the products identified in the notice and other food products carrying the allegedly misleading claims, and to submit an action-taken report within 15 days.

The Delhi High Court stayed the order on 7 August and said, prima facie, the regulator should not have issued the prohibition without first giving Dabur an opportunity to be heard.

On Wednesday, shares of the company closed 3.5% higher on the National Stock Exchange at ₹395 in a largely positive market.

Dabur's board declared an interim dividend of ₹3.50 per share for FY27, amounting to a total payout of ₹620.88 crore.

Mohit Malhotra resigned as whole-time director on the board of Dabur India and as global chief executive, citing a new overseas leadership role effective 16 November. He will exit Dabur on 13 November.

“Since I joined Dabur as a management trainee more than three decades ago, I have watched it grow from a ₹250-crore company into a transnational enterprise with a footprint in over 100 countries and revenues of more than ₹13,000 crore,” Malhotra said.

The company had already appointed executives to lead the India business. Herjit S. Bhalla was appointed as the chief executive officer (CEO), India business for Dabur India with effect from 23 April. Whole-time director PD Narang will continue providing strategic guidance across the group, including oversight of its international operations. Dabur has not announced a successor to Malhotra yet.

“We delivered profitable growth despite operating in a challenging external environment marked by geopolitical uncertainty and elevated input-cost pressures,” said Bhalla in a statement on Wednesday. “What gives me confidence is that the growth has been broad-based and backed by healthy underlying volumes."

Dabur's home and personal care business grew 10.9% in the September quarter, led by hair care and home care, while skin and oral care posted steady growth.

Hair oils reported a high-teens growth rate driven by double-digit growth in both perfumed and coconut oils. Shampoo segment also report a high teens growth rate. The skin and salon business expanded at a high-single-digit pace, while oral care reported mid-single-digit growth.

Healthcare business grew 6.9% in the digestives, over-the-counter (OTC) and ethical businesses, which posted strong double-digit growth.

The food and beverages business grew 17.4%, driven by strong performance in foods and a sequential recovery in beverages. Acquired brand Badshah also recorded strong double-digit volume-led growth.

Neethi Lisa Rojan is a senior correspondent focusing on the consumer goods and retail sector working from Mumbai for Mint since 2026. She has been a journalist for a little over two years with Moneycontrol and The Morning Context. She has covered the consumer and healthcare sectors in earlier roles. She was a double gold medallist during her bachelor’s from Mahatma Gandhi University Kerala and post-graduation from Pondicherry University. With a background in commerce and journalism, she brings a sharp analytical lens to stories on India’s fast-evolving consumer goods and retail sector.<br><br>With an academic background in business administration and a keen eye for financial statement analysis, she bridges the gap between corporate data and compelling narrative journalism. Her reporting is characterized by a focus on how evolving consumer behaviours and regulatory changes impact India's largest mass-market brands. She is a keen learner with diplomas in international business, human rights and journalism. She specialized in business journalism at the Asian College of Journalism, Chennai. When she is not looking into shopping carts, you can find her explaining the latest conspiracy theory.

Get Latest real-time updates

Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

✕

Wait for it…

Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.