Dabur Q2 Results Review - Urban General Trade Fix Done; Portfolio Still Under Near-Term Pressure: Systematix

Systematix Research Report

We note ~50% of Dabur Ltd.’s portfolio is facing near-term growth headwinds (nectars, oral care, coconut hair oils, international business) due to elevated competitive aggression or currency woes. Secondary sales growth in India business (+2% YoY) was also quite low.

In FY26-FY27E, Dabur’s performance can gradually revive, aided by-

1. sustained rural rebound (c.50% sales salience) and

2. expanding distribution (now total reach of 8.4 million).

Dabur should get a leg-up from-

1. strong leadership positions in legacy ayurvedic products (honey, chyawanprash),

2. premium launches/ format extensions in HPC, and

3. an food and beverage turnaround with launches that plug portfolio gaps.

We expect margin support from continuing cost savings (under Samruddhi) and pricing power in ‘power brands’. International markets can also witness recovery driven by reach/ portfolio expansions.

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