Homegrown FMCG major Dabur India has announced price hikes of up to 4% across parts of its portfolio while also reducing grammage in smaller packs as the company battles rising input costs triggered by geopolitical tensions in the Middle East.
The company’s management said inflationary pressures have intensified sharply over the past few months, forcing the maker of Dabur Red, Real juices and Hajmola to recalibrate pricing and pack strategies to protect margins. The announcement came during Dabur’s Q4 FY26 earnings call, where the company also reported strong revenue and profit growth despite the challenging cost environment.
Speaking during the investor call, Mohit Malhotra, Global Chief Executive Officer at Dabur India, said the company is witnessing inflationary pressures across several parts of the business due to supply chain disruptions and commodity inflation linked to the ongoing West Asia conflict.
“We are seeing an inflation of roughly around 10% hitting us,” Malhotra said during the earnings call, adding that the company has already implemented “4% price increases across different parts of the business” to mitigate the impact.
Apart from direct price hikes, Dabur is also reducing pack sizes in its lower price point offerings, particularly Rs 10 and Rs 20 packs. According to management, these packs had earlier received higher grammage benefits after GST revisions, creating room for recalibration now.
Malhotra noted that the company may consider another round of price hikes depending on how commodity prices and geopolitical developments evolve over the coming months. He also said inflation is impacting most categories apart from beverages and healthcare.
The move comes at a time when several FMCG companies are resorting to a mix of price hikes, discount rationalisation and pack size adjustments to defend margins amid rising raw material and packaging costs.
Despite the inflationary challenges, Dabur posted a relatively strong Q4 performance. Consolidated revenue rose 7.3% year on year, while domestic FMCG business growth stood at 9.5%, supported by 6% volume growth. Net profit for the quarter increased 15% to Rs 369 crore.
The company’s home and personal care business remained a major growth driver during the quarter. Hair oils grew 28%, shampoos expanded 20%, while the home care portfolio registered 24% growth led by brands such as Odonil, Odomos and Sanifresh.
Healthcare and beverages also delivered healthy momentum. Dabur’s honey portfolio grew over 20%, while premium beverages including Real Activ and coconut water recorded strong double digit growth. Coconut water sales doubled during the quarter, according to management commentary.
On the demand side, the company said rural markets continue to outperform urban markets, although the gap has started narrowing sequentially. Dabur also highlighted improving consumption trends supported by tax rationalisation measures and gradual urban recovery.
Looking ahead, Dabur expects revenue growth to move from high single digits towards low double digits in FY27, driven by a combination of pricing actions and volume recovery. The company said premiumisation, distribution expansion and brand investments will continue to remain key growth levers.
Malhotra also cautioned that weather conditions could play a crucial role in the performance of summer dependent categories like beverages and glucose. He said a stronger summer season could help the company deliver double digit growth in those segments during the first quarter.
