Q2 FY27 results analysis · November 04, 2026
Dabur India Q2 FY27 Results Analysis: Margin Compresses 68 bps, Revenue Grows 12%
+12.1%PAT year on year, Rs. 498.57 Cr
Source: Quarterly results filing (BSE)
Quick summary
Dabur India Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 3,563.07 Cr (+11.65% YoY) and PAT growth of +12.09% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 04, 2026 |
|---|---|
| Revenue (Q2) | Rs. 3,563.07 Cr (+11.65% YoY) |
| PAT (Q2) | Rs. 498.57 Cr (+12.09% YoY) |
| EBITDA margin | 22.57% (-26 bps YoY) |
| EPS (Q2) | Rs. 2.85 (+11.76% YoY) |
Quarter Snapshot
Dabur delivered double-digit Q2 growth (revenue +11.65%, PAT +12.09%) in line with its October guidance, but operating margin fell 68 bps YoY to 17.75%, running against management's own FY27 margin-expansion commitment. The margin pressure is partly masked by an inventory drawdown, with the crude/packaging spike still to be fully absorbed, and operating profit growth (+7.55%) trailed revenue for the first time in the acceleration sequence. Top-line guidance remains on track while the margin target is a stretch, with the Sesa Care amalgamation set to alter H2 comparability.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "in line to ahead of the guided double-digit revenue path" | +11.65% YoY | Played out |
| PAT | double-digit per the October 6 update | +12.09% total / +11.70% owners | Played out |
| Margins | gross-level compression, OP margin hinging on A&P | OP margin 17.75%, −68 bps YoY, −194 bps QoQ; A&P −2.99% YoY; inventory drawdown absorbing the crude spike with a lag | Played out |
| "Double-digit profitable growth in line with top line" — war-conditional | war continuing → wait-and-watch | PAT kept pace with revenue, but operating profit +7.55% trailed revenue +11.65% | Partially |
| USD/INR ~9% YoY translation tailwind | revenue tailwind on ~27% international base | Filing gives no split; consol-vs-standalone gap (+11.65% vs +8.87%) is directionally consistent | Not observable |
| Watch items: volume/price split; HPC/OTC category detail; MENA cc | open for the call | Not disclosed in the filing — remain open for the November 5 analyst meet | Not observable |
| Watch items: Sesa treatment; interim dividend; FDA; FSSAI | open | Sesa and dividend addressed in the filing (Section 7); FDA/FSSAI silent — open | Partially |
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Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Q2 FY27 consolidated revenue & PAT growth double-digit | Company business update, October 6, 2026 | Revenue +11.65%; PAT +12.09% (owners +11.70%) | Met |
| FY27 consolidated revenue double-digit (upgraded at the Q1 FY27 call) | Q1 FY27 earnings call, July 29, 2026 | H1 +11.09% | On Track |
| FY27 operating margin better than previous year | Q1 FY27 earnings call, July 29, 2026 | H1 18.75% vs 19.04% (−29 bps) | Stretch |
| FY27 ordering: PAT > OP > revenue growth | Q3 FY26 earnings call | H1: PAT +13.81% > revenue +11.09% > OP +9.39% — OP leg out of order | Stretch |
| FY27 F&B double-digit | Q4 FY26 earnings call, May 7, 2026 | Food segment +14.07% YoY (H1 +9.57%) | On Track |
| "Sequential acceleration in revenue growth" | Q1 FY27 earnings call | Q2 +11.65% vs Q1 +10.57% — the FY-level acceleration held; QoQ the quarter is seasonally lower | Confirmed |
| Margins to improve year-over-year (product mix, premiumization, savings) | Q4 FY26 earnings call | Operating margin −68 bps YoY (17.75% vs 18.43%); H1 −29 bps — so far | Contradicted |
| Margin protection prioritized over aggressive advertising if inflation persists | Q4 FY26 earnings call | A&P −2.99% YoY while margins still slipped — the defence was deployed, and was not sufficient alone — stance held | Confirmed |
| India FMCG accelerating to double digits; rural outpacing urban | Business update, October 6, 2026 | Not split in the filing; consolidated and standalone growth are directionally consistent | Too Early |
Key Investment Insights
Key Positives
- Revenue grew 11.65% YoY to Rs.3,563.07 crore, accelerating from +10.57% in Q1 FY27 and meeting the October 6 double-digit guidance
- PAT grew 12.09% YoY to Rs.498.57 crore (owners Rs.505.50 crore, +11.70%)
- Food segment grew 14.07% YoY, tracking the FY27 double-digit F&B target
- Consumer Care (83% of revenue) grew 11.41% YoY with near-flat EBIT margin (-14 bps)
- Total debt reduced by Rs.884.04 crore QoQ to Rs.1,444.67 crore; debt-equity 0.13
- Interim dividend of Rs.3.50/share (Rs.620.88 crore) declared, 56.63% of H1 PAT-to-owners
- Free cash flow of Rs.549.55 crore in H1 despite working-capital build
- Retail segment loss narrowed YoY (Rs.-1.86 crore vs Rs.-2.70 crore)
Risk Factors
- Operating margin fell 68 bps YoY and 194 bps QoQ to 17.75%, contradicting management's FY27 margin-expansion guidance
- Operating profit grew only 7.55% vs revenue +11.65%, breaking the guided PAT > OP > revenue ordering
- Other expenses rose 23.59% YoY on war-disrupted supply routes and HPC/OTC inflation
- Materials cost decline reflects an inventory drawdown (+62.91 swing vs -114.36 build), not input-cost relief; crude/packaging spike still working through ~5-month inventory cover
- Trade receivables rose 48.15% vs March; H1 CFO/PAT at 0.65x vs 0.79x prior year
- Sesa Care amalgamation consolidates retrospectively from Q3 FY27, breaking H2/FY27 comparability
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