Dabur India on Monday (January 5) announced that it expects its consolidated revenue for the December quarter of 2025-26 to increase by a mid-single digit percentage, while both its operating profit and profit after tax are expected to grow at a faster rate than revenue.
The Ghaziabad-based fast-moving consumer goods company anticipates that positive macroeconomic conditions and recent tax reforms should help support ongoing demand recovery and improvements in revenue over the next few quarters.
Dabur on quarterly performance
In its quarterly business update, the company said that after trade stabilisation, consumer sentiment improved in both urban and rural markets, with rural demand continuing to outperform urban demand during the quarter.
The company anticipates that its home & personal care business in India will see double-digit growth, driven by strong performance in the hair oils and oral care categories. The company said that most of its product range has outperformed the overall market and is likely to gain market share in the December quarter.
Dabur’s healthcare business is expected to report low-single digit growth, while within food and beverages, the culinary business is expected to record double-digit growth, the company said.
FMCG companies witness increase in sale
FMCG companies saw increased sales in the quarter that ended December 2025 after the Goods and Services Tax reforms announced on September 22 significantly boosted consumer demand.
Sales volumes of FMCG companies are expected to have increased by about 9–10% in the December quarter, compared to 7.1% during the same period last year, as Q3FY26 was the first full quarter following the reduction of GST rates, which helped companies revive the slowdown in consumption caused by inflation that had affected the market for several quarters.
Last week, Marico Ltd also reported a steady operating performance for the December quarter, with its India business delivering high-single-digit underlying volume growth and the international portfolio recording robust constant-currency growth in the early twenties, according to a regulatory filing.
At the end of the September quarter, the majority of listed FMCG companies expected the second half of FY26 to deliver volume-led growth as supply chains normalise.
Earlier data from NielsenIQ also highlighted a shift in demand patterns. In its July–September update, the research firm noted that rural markets had outpaced urban areas by volume growth for seven straight quarters, although the gap narrowed as cities showed signs of recovery.
Data from retail intelligence platform Bizom showed that all-India value growth stood at 4.4% for November 2025 and 6.85 in October 2025. Rural value growth, according to Bizom, stood at 5.7% for November and 7.1& in October, while Urban value growth stood at 2.5% for November, after reporting a sharp rebound of 6.3% in October.