Good evening, ladies and gentlemen. On behalf of the management of Dabur India Limited, I welcome you to the earnings conference call pertaining to the results for the quarter ended 30th June 2026.

Present here with me are Mr. Mohit Malhotra, Global Chief Executive Officer; Mr.

Ankush Jain, Chief Financial Officer; Mr. Herjit Bhalla, CEO India Business.

We will start with an overview of the company's performance by Mr. Mohit Malhotra, and this will be followed by a Q&A session.

I'll now hand over to Mr. Mohit Malhotra.

Thank you.

Thank you, Rahul. Good evening, ladies and gentlemen.

We welcome you to Dabur India Limited's conference call pertaining to the results for the quarter ended 30th June '26. The Indian consumption environment remained stable during the quarter, despite weather-related disruptions, inflationary headwinds, and geopolitical disturbances.

Rural demand continued to demonstrate momentum, outperforming urban markets. War-related disturbances in the Middle East impacted input cost trends and supply chain efficiency across our businesses, including India.

Despite the challenging environment in the quarter, our international business delivered double-digit growth supported by proactive market interventions and agile execution. Against this backdrop, Dabur delivered a strong start to the year.

During quarter one financial year '27, our consolidated business grew by 10.6%, driven by broad-based growth across both India and international businesses. India FMCG business revenue grew by 9.5%, backed by volume growth of 5%.

International business grew by 15.5% in INR terms. Within the domestic business, HPC portfolio continued its strong momentum, recording a 12.3% growth.

Our hair care business, including hair oils and shampoos, registered strong double-digit growth. Hair oil portfolio grew in high teens year-on-year, with both perfumed and coconut oils growing in double digits.

We outpaced category growth and gained 102 basis points in market share. The shampoo portfolio delivered strong double-digit growth during the quarter.

During this period, Vatika launched Bio-Infusions range, India's first no added salt shampoo range, reflecting our commitment to science-backed innovation and evolving consumer preferences. We continue to drive growth through a combination of premiumization, innovation, and expanded participation in high-growth segments across both hair oils and shampoos.

The oral care portfolio delivered near double-digit growth led by strong momentum across the Red franchise, Meswak, and the Dabur Herbal range. Lal Dant Manjan also posted a double-digit growth during the quarter.

Consumer preferences for Ayurvedic, herbal, and natural oral care solutions continued to strengthen, with herbal segment outperforming the non-herbal segment by 550 basis points. Supported by our strong portfolio in this category, we outperformed the overall toothpaste market growth and further strengthened our market share position.

Skin care portfolio registered a high single-digit growth driven by Gulabari franchise and OxyLife. The OxyLife De-Tan range continues to gain traction among the consumers, reflecting the relevance of our premium skin care offerings.

The home care portfolio delivered mid single-digit growth led by Odonil and Sanifresh. Odonil, despite shortages in RM availability, posted a high single-digit growth during this quarter, aided by strong momentum in aerosols and zippers, translating into market share gain of around 80 bps.

Our recently launched camphor cones and car fresheners have also witnessed encouraging consumer acceptance. Sanifresh continued the strong momentum, delivering a growth in high teens.

In our health care portfolio, health supplements grew in low single digits. Honey performed very well, with a high single-digit growth resulting in gain in market share of 150 bps.

Premium variants like Sunderbans and organic honey witnessed good growth. Glucose portfolio was marginally impacted during the quarter on account of unseasonal rains at the beginning of the quarter and has since seen strong recovery in the second half of the quarter.

In the digestives portfolio, Pudin Hara franchise registered a double-digit growth. Recently launched Pudin Hara 5-in-1 Fizz has also witnessed encouraging consumer response.

Hajmola franchise registered a near double-digit growth, supported by packaging refresh across the portfolio. Isabgol registered a strong double-digit growth.

Within OTC and ethicals, Honitus registered a strong double-digit growth of 25%, driven by targeted media campaign, reflecting and highlighting safety and efficacy. Health juices continued on strong trajectory and grew in mid-20s.

Our recently launched new-age nutraceutical brand, Siyens, grew 3x during the quarter. Our food and beverage portfolio registered a high single-digit growth.

Despite unseasonal rains in the beginning of the quarter impacting April, our beverage portfolio made a strong comeback in May and June with mid teens growth. Our premiumization strategy continued to deliver strong results, with active juices growing by over 40% and coconut water registering a growth of over 70% during the quarter.

We continue to outperform the category, gaining around 600 bps market share in active juices and 344 bps in coconut water. Our foods business continued strong double-digit growth of around 30%.

Badshah business registered a volume-led double-digit growth. Coming to international business, despite continued impact of war, we registered strong growth of 15.5% in INR terms.

This was on back of around 9% growth in MENA region, 22% growth in UK European Union, 28% growth in Egypt, 27% growth in Turkey, and 34% growth in Bangladesh. Coming to profitability now, despite elevated inflation across several input categories and continued cost pressures in most international markets, we delivered a healthy margin performance through a combination of portfolio premiumization, productivity improvement initiatives, and disciplined cost management.

As a result, operating margin grew by 11% and profit after tax increased by 15%, both ahead of the top line, reflecting the strength of our brand portfolio, execution capabilities, and resilient business model. Looking ahead, while geopolitical developments in the Middle East continue to warrant a close monitoring, we remain confident of delivering a sequential acceleration in revenue growth.

Stable consumption trends, our go-to-market transformation initiative Saksham, focused investment in premiumization and innovation, and sustained brand building efforts position us well to drive profitable growth in the quarters ahead. With this, I conclude my address and open the floor for any Q&A.

Thank you.

Sure. Thank you.

I have three questions. My first question is on Badshah.

If you could tell us in the last few years since the acquisition, have you managed to add good presence in any new state? Because I understand at the time of acquisition, it was I think only two states.

If you could discuss expansion in any other state. Apart from that, are you happy with the performance?

Because ideally, double-digit volume growth for this kind of a business would have been a more desired number, given it was in just a few states. If you could tell us what else is needed.

It's a good category. A lot of players have come in.

Is there a differentiation issue, because almost every listed food company has a presence in this. That is my first question.

Hi, Abneesh. I think our Badshah business continues to trend well on a double-digit growth trajectory, backed by double-digit volume growth in the domestic market and also international.

I don't know whether you heard, our Badshah business has actually grown by 13.3%, backed by roughly around 11% kind of a volume growth, which is there in the domestic business. We are pretty happy because there is no price increase here in Badshah.

Most of the spices are actually deflationary, and all this growth is coming on back of volume. That said, the international business is also growing by more than 40% in Badshah.

You're right, we were present in two states, Gujarat and Maharashtra. We've expanded beyond Gujarat and Maharashtra to MP, Rajasthan, and now to Delhi NCR.

That's significantly picked up and there's a good traction that we are seeing despite taste being a little disparate in these areas. Because of quick commerce and e-commerce, I think the business is substantially picked up.

Now the total contribution of e-commerce and quick commerce, which is helping us to taking the brand beyond these two states, is almost 6% of the overall turnover and it is growing at triple digits, e-commerce for us, as we are listing in more and more dark stores. We are pretty happy with the Badshah performance.

The margins have also expanded, and the growth continues on a double-digit trajectory, which is what we had decided at the time of the acquisition. When we acquired, the business was roughly around 200, 220 crores.

Now the business is trending at around exit of around 400-odd crores. I think pretty happy with the performance, yeah.

Sure, thanks. I was of the understanding that there is severe inflation, specially I think in chili and some of the other flavors.

Maybe that's not too much relevant for your SKUs. My second question is essentially on your two problem categories.

Wanted to get more insights there. Yes, I do understand April month was challenging.

Yesterday, Varun Beverages also said that April month their growth was flat and then spectacular recovery in May and June, which you also I think said for your fruit juice business. Here the question is, did glucose also see recovery in May and June or is there a shift of customer, because obviously glucose is pure sugar and obviously not exactly great from a health perspective, and there are so many options of energy drink, this thing, that thing.

The customer definitely has more options versus say five years back. Is there a structural worry for glucose, and did you see great recovery in May and June?

I think that will answer whether there is a structural issue. Coming back to juice business, again Campa Cola impact is very disruptive.

Plus I think in your packaging, I think there was a fruit juice overall how you can write 100% fruit juice and all that. If you could tell us, is the big issue in the fruit juice growth now behind us?

Can last two months' growth be the new normal, or still here every month, every quarter is a new time period to analyze?

Right. In these two categories, glucose as a business, like you rightly said, Abneesh, it's bounced back after April.

In May and June, we saw mid teens growth and high teens growth actually both in glucose as also juices. I think season plays a very big factor.

As far as glucose is concerned, it's more of a rural consumption and therefore sugar is not a issue. It's consumed for its DMH and it's consumed for instant energy, especially when the summer and the heat is there.

Out-of-home consumption is very high in terms of glucose, especially in rural areas of Bihar, West Bengal, Orissa, and that Hindi belt, and it continues to do well in the May and June. It's a mid double-digit growth, and so is the case in juices.

Like I told you, in juices 100% juices grew by around 45%, and our coconut water grew at around 70%. Our fizz portfolio also grew by around 30-35%, driven by Hajmola Fizz as a brand and other fizz portfolio.

Nectar also turned profitable in the second half of the quarter when the summer actually started. I don't think there's any problem in these two categories.

It's just a season which plays havoc, and that's why you saw overall food and beverage growth was around 8%. Which is pretty healthy, and despite April not being very good.

Ex-glucose, our healthcare also grew by roughly around 7%.

Yeah. Last question essentially, Mohit.

If I see clearly you have earmarked 500 crores for D2C kind of acquisition. What will be the time period for using that?

Is there a frozen time period, because this is slightly depending upon what is available and this is obviously going to be up for negotiations, etc. Second is in terms of innovation, disruptive innovation, I'm not talking about regular brand extensions, if you could give us what have been the big innovations which you are quite happy with in the last say few quarters, disruptive innovations where you have also managed some level of scale currently.

Sure.

Right. As our acquisition strategy is two-pronged.

One is to get a foot in the door in new D2C players with a minority stake, work with the promoter, see that it turns profitable, and once it turns profitable, then claw to a majority stake. That's what we're doing.

We're continuously on a lookout for acquisition targets which are not obscenely expensive and which are making sense and which are synergistic to our entire portfolio. That's what we look at.

We are continuously on a lookout. As we speak, also we're talking to two or three companies.

Like you rightly said, while we have a target set for ourselves, that we have a vision period of around three years now. In three years, we should be acquiring one or two companies which should be sizable.

That's the target that the management is actually taken, but it all depends upon negotiations which actually happen, because most of these D2C companies run a process. As a process, you participate in the bid, but you can't guarantee the success.

That's where you are. While we have targeted ourselves, there's a commitment to do the number, but it all depends upon the negotiation.

That's the first part of your question. As far as the second part of your question on disruptive innovation, I think we are very happy with the innovation that we've done in health supplements and the nutraceutical space.

We've launched a brand called the Siyens. Last year was the first year.

It was a fag end of the year we launched it. We will see a exit of roughly around 50-odd crores of ARR that we will have at the end of the year with Siyens.

The brand is month-on-month doing well, and we are seeing it as a D2C disruptive healthcare play for us. This is besides innovation that we are doing in every respective category that we are present in, be it hair care, be it shampoos, be it home care, or be it skin care and honey, etc.

Those innovations to extend the life cycle of the brand and to bring in new news is happening. This is one that I can definitely call out as the disruptive one, as Siyens.

Sure. One last follow-up, Mohit.

Is Harjit, Mr. Herjit Bhalla there on the call?

If he's there in the first three months...

He's very much there.

Sure.

Herjit, you want to say hello and you to tell what's happened? You can hear it from the horse's mouth.

He's right here with us.

Hi.

Three months of Dabur, Herjit, what is the initial analysis? What are you seeing as strong points?

What can be the areas of improvement? What will be the framework, what will be the focus areas?

If you can highlight. Three months is a short time, but you come from extremely strong pedigree of Unilever, Hershey's, etc.

If you could tell us what are your initial thoughts.

Abneesh, hi, and firstly thank you for the warm welcome. It feels very great speaking to all of you.

Yes, closing in on three months and delighted to be part of this iconic organization. At this stage, the focus has been completion of inductions, a lot of listening, a lot of learning, a lot of connecting with people across the board, right.

My take on strengths is very similar to what we would see Dabur as iconic brands, the distribution might that is a strong moat for us, the passion of the people and the love or trust of the consumers are clearly something that has stood us in good stead. I'd also say that it's been a good first quarter of my journey here.

The results that are being shared are reflecting the consistency almost of the last three quarters. At this stage, this is what I would be happy sharing, and would look forward to coming back and talking in more detail later in the year.

Sure. Thanks, Harjit.

Thanks, Mohit. All the best.

Thank you.

Thank you. Thank you, Avnish.

Thank you. Thank you, Harjit, yeah.

Hi. Good evening and thanks for the opportunity.

Two questions here. Can you give us a sense of the volume growth in the sort of hair oil business and how that shapes up just given a very sharp inflation in prices there?

Secondly, going forward as the sort of base gets tougher, what sort of growth do you expect for the rest of fiscal '27? Thanks.

Right. Hi, Aditya.

I think hair oil business has been showing very good traction since couple of quarters. I think, hello, am I audible?

Yes, you are. Thanks, Mohit.

Yeah. Hair oil business been showing great progress, and I think all sub-segments of hair oils are doing well.

Both coconut oils, perfumed oils, value-added almond oils, and our flanker brands of Amla, all have shown a double-digit growth on value. Partly it's coming out of GST-driven price increase and inflationary price increases, and there's a 8% volume growth which is backing this growth of around 18% in overall hair oils.

So, 50% growth is coming out of volume, and 50% is coming out of price, because price increase was imminent because of the LLP prices moving up. It's all crude-linked.

We had to take up this prices. We've taken it up, the table has gone up.

We are confident of having a double-digit growth in hair oils also going forward in the next quarter, and subsequent quarters will also follow. That's as far as the hair oil is concerned.

Our entire campaign of Shampu Se Pehle Oiling Ji is working very well, and which is where Deepika Padukone is there. We are seeing good trial generation, market share increase of 107 basis points, penetration moving up.

All parameters in terms of hair oils, whether it is household panel or Nielsen or all of the numbers are trending up well. In the Hindi belt, we are only number two hair oil penetrated brand.

Almost every second household in the Hindi belt is now Dabur hair oil user. That's a very big news in terms of hair oils for us.

On the business projection for balance of the year, we had taken a target of a double-digit growth in the current year, and we maintain that we will have a double-digit growth in the current year revenue. While the inflation is really impinging on us, but we feel that our brands have got strength to pass on this inflation in terms of price increases to the consumer.

We are vigilantly, watchfully watching this whole Middle Eastern war situation to see that steps are taken to mitigate the inflation. We're confident that our margins are better than last year and should be accretive to our top-line growth also.

For the full year. No,

thanks, Mohit, and very clear on the ambition, and that's great. Just to double-click on that double-digit growth, this would be for both the India business and the consol business, or at a consol level?

No, no.

I'm talking at the consol level, but for India and consol, I'm talking about consol, double-digit growth consol for the full year, because we've got a little tailwind on international business in the sense of currency also. There's a dollar-denominated markets of Middle East, which gives us a currency upside in India.

That's icing on the cake here. Yeah.

No, very clear. Thanks for taking the question.

All the best.

Thank you.

Thanks for the opportunity, Mohit. Two questions from my end.

We've seen 15% plus growth for the second quarter in a row, congrats for that. Now given whatever we are reading on monsoons, what is the outlook on the India business?

Because half of the country in terms of districts are below normal still in monsoons, and half of them are positive. What's the outlook as we move forward?

Secondly, if I look at our liquid cash and investments, they are 9,500 crores. This is being piling up.

Obviously, we've increased the dividend payout over the last two years, any thoughts on capital allocation, returning it back, or some big-bang acquisition? These were my two questions.

Thank you. Right.

As far as the monsoon and El Niño is concerned, there was quite a lot of concern that there will be a deficit rainfall and therefore farm output will get impacted, and therefore the income of farmers and therefore rural growth would be a little tepid. What we've seen on the ground is, in the last fortnight, a lot of monsoon deficit has actually got covered up, I think with a lot of rain which we have seen.

I think there's actually a 14-15% deficit only as far as the rain is concerned, which augurs very well for the Kharif growth season. I don't think so it's going to impact so much.

What we have seen in past one quarter, rural continues to be resilient, and rural is growing ahead of urban at 170 basis points for the Nielsen as a category, and also for us. As far as our business is concerned, we have a rural growth of around 550 basis points, which is ahead of the urban growth, and I'm only taking GT.

If I take obviously modern trade and e-commerce is completely urban, I'm not taking that. Rural is pretty resilient, and so is urban resilient.

There is no caution that we've seen our numbers and what the market is telling us from a Dabur system. From a Nielsen point of view also, rural is trending up.

While the inflation is picking up, that's a little concern, but government is offering a lot of sops in terms of MSPs, and I think we should be able to navigate the season and the full year also on back of good rural and also decent urban growth, yes.

On capital allocation... Ankush, you.

No, if you had something, Prakash?

Yeah. On capital allocation, I see cash and investments of I think 9,500 crores on the balance sheet.

Current market cap is around 77,000 crores. Any strategic direction to capital allocation, because that's a large sum on the balance sheet and it's been lying.

Can we put it to work, and then be more payouts? Obviously, we've increased dividend payouts over the last two years to 75-80% of PAT, but still, that's a lot of cash given the current market cap.

Any thoughts on that?

Sure, Prakash. We are approximately sitting with almost 9,000 crores cash net, and out of that roughly 6,500 crores is in India.

There would be three, four capital allocation strategy. First, obviously, being acquisition, and acquisition will be either a mid-to-large-scale company or if would in go into D2C, we have already allocated 500 crores for Dabur Ventures.

One, the strategy is set there. Second would be dividend.

Dividend, as we have already enhanced, and 100% of India profits actually goes back as dividend. Third would be capex for routine expansion.

We're anyway coming with greenfield in Tamil Nadu, which will consume cash. Another 400 to 500 crores goes in cash globally.

Broadly this, and also as I said, any good-size M&A, if it's in pipeline, that we will also consider, a couple of them. Dividend, as you rightly said, we have increased it.

Rest depends on the shareholders, depending on the opportunity.

Okay. Because still we would generate cash flow and that all this would be sufficient from the cash flow itself.

Maybe we should consider it at a board level or decide capital allocation, that will be helpful for investors.

Definitely, Prakash. Therefore, you have seen that last two or three years, we are not increasing it disproportionately.

So, 100% of India profits anyway go back,

and

whatever remains outside India is there for future expansion in international business. That we don't bring back.

In India, cash we are not expanding.

Sure. Mohit, if this double-digit volume comes through, we should be in a position to maintain this 14-15% PAT growth at a consol level in the coming quarters, assuming the double-digit volume comes through?

Yeah. Volume will not be double-digit in any case.

I was talking about the top line being double-digit. It will be more driven by revenue and price, because of the inflation we had to pass it on to the consumer.

Price growth and value growth is becoming higher as compared to the volume growth. Volumes will be under pressure as the inflation is too much.

Because of the inflation, while we want profit growth to be accretive to the top-line growth, but we'll have to watch the inflation and the underlying inflation is the geopolitical situation, which has to be watched to see how the situation will be going forward. Yeah.

It all depends upon the war. If the war ends tomorrow, then I think the petroleum prices will come down, and therefore crude-linked inflation will come down, and we'll be very confident on delivering a double-digit profitable growth in line with top line.

If the war continues, then it's a wait-and-watch situation.

Wait-and-watch trend. Understood.

Understood.

Yeah. Thank you.

All the best.

Thank you very much.

Thank you everyone for joining us today on our earnings call. The webcast recording and transcript will be available on our website.

Thank you and have a great evening ahead.