Dabur India (DABUR IN) – Q3FY26 Result Update – Demand outlook improves, base favorable – HOLD
Published on 29 Jan 2026
We increase our FY27/FY28 EPS estimates by 4.1%/3.6% led by 1) Healthy demand outlook. 2) Margins to improve in near to medium term led by outperformance in premium portfolio & 3) Sustained Market share gains across key portfolio led by favorable macro environment. Dabur saw QoQ improvement in Q3, with Q4 expected to be stronger on better seasonality and normalization post-GST. Hair oils and oral care continue to drive growth, while margins remain resilient at pre-GST levels despite competitive intensity. With benign input costs, improving urban demand and rising premiumization, FY27 growth is likely to be mix of volume and value with an aim to restore margins to normal level over medium term.
We estimate 9.7% Sales CAGR & 10.7% EPS CAGR over FY27-28 which shows recovery on a low base. Sustained growth can result in some uptick in multiples; however, valuations are in line with LT averages. Retain Hold with a target price of Rs525 (41xDec27 EPS, Rs 506 earlier valuing at 41xSept27).
