Dabur Q2 Update: GST announcement and rain impact sales, growth expected to accelerate going forward:

News Topical, Digital Desk : Dabur India, a leading FMCG company in the country, has released its second-quarter business update. According to the company, sales have been impacted by customers postponing purchases due to the announcement of a GST rate cut. Floods and heavy rains have also impacted the beverage business. However, the GST reduction will further increase demand in the sector, and revenue growth may pick up in the coming quarters. According to the company, consolidated revenue growth in the second quarter is expected to remain in the mid-single digits. The stock is trading with a slight gain on Tuesday.

What did the company say?
In a filing with the stock exchange, the company stated that it expects consolidated revenue growth to be in the mid-single digits for the quarter ending September 2025. The company stated that the recent GST rate cuts will boost consumption and accelerate growth in the coming quarters.

Benefits of GST Reforms According to the company, the reduction in rates on key consumer goods from 12-18% to 5% under the GST reforms announced by the government in September 2025 will boost demand in both rural and urban markets. The company stated that approximately 85% of its products now fall under the 5% GST slab. The company stated that it will pass on the full benefit of the reduced GST rates to consumers.

Impact of the GST announcement on September sales The company stated that following the change in GST rates, consumers and distributors postponed purchases in anticipation of lower-priced products, which temporarily impacted sales in September and the entire quarter. On the other hand, non-GST affected brands like Dabur Honey, Anmol Coconut Oil, Gulabari, and Hajmola Zeera performed strongly, helping the company maintain market share across over 90% of its product portfolio. In the Home and Personal Care category, the Oral Care portfolio—particularly Dabur Red Toothpaste and Meswak—delivered double-digit growth. The Skin Care segment saw high-single-digit growth driven by the Gulabari and Oxy brands. Vatika Shampoo also recorded high-single-digit growth, while Hair Oils saw mid-single-digit growth. Odonil performed well in the Home Care segment. In the Healthcare category, brands like Dabur Honey, Honitus, Hajmola, and Health Juices recorded double-digit growth driven by strong volumes. However, the beverage category was impacted by heavy rains and floods in July-August. Nevertheless, the company's 'Active' range—which includes premium juices and coconut water—delivered over 30% growth. Regarding distribution channels, e-commerce (which includes Quick Commerce) continued to deliver double-digit growth, and modern trade also maintained its strength. International business performed well, although political instability in Nepal impacted business. The company expects mid-single-digit growth in international business. (Disclaimer: The opinions and advice expressed on CNBC TV18 Hindi/CNBC Awaaz are the personal views of the experts or brokerage firms; the website or management is not responsible for them. Please consult your financial advisor or certified expert before investing.)