Dabur Share Price in Focus; Reports Early Signs of Demand Recovery After GST Cut Impact

Indian FMCG major Dabur has reported early indications of demand revival in the third quarter after a temporary slowdown caused by GST rate revisions. 

Consumers had postponed purchases ahead of the tax cuts, affecting second-quarter sales. 

With revised GST rates now in effect, the company notes improving sentiment across urban and rural markets, supported by stabilising trade conditions.

Demand Recovery Trends

Dabur stated that the third quarter has shown initial signs of demand improvement, largely driven by the implementation of revised GST rates. 

The company observed that consumers who had delayed spending during the previous quarter have gradually returned to the market, leading to stabilisation in sales volumes.

Revenue Outlook for Q3

The company expects its consolidated revenue to grow in the mid-single digits during the third quarter, compared with a growth rate of around 3% in the same period last year. 

This outlook reflects improving consumption patterns and easing disruption from earlier tax-related delays.

Impact of GST Rate Revisions

The Indian government announced changes to GST rates in August, with lower taxes coming into effect from late September. 

Dabur highlighted that a significant portion of its product portfolio, previously taxed at 12% and 18%, is now subject to a 5% levy, as per The Economic Times report.

This adjustment has made everyday consumer goods more affordable, supporting gradual demand normalisation.

Category-wise Performance Expectations

Dabur expects stronger growth in several key categories during the third quarter, including honey, toothpaste, hair oils, fruit juices and coconut water. 

These segments are anticipated to record double-digit growth as consumer confidence improves and price stability returns.

Market and Cost Environment

Like many consumer goods companies, Dabur has faced challenges from elevated commodity costs and subdued urban demand in recent quarters. 

However, the company believes that favourable macroeconomic conditions and recent tax reforms could help support its revenue performance in the coming quarters.

Dabur Share Price Update

Dabur India Limited shares had closed at ₹521.20 in the previous session on Jan 6, 2026.

Read More: US–Venezuela Tensions and Crude Oil Prices: Why India Faces Limited Impact.

Conclusion

Dabur’s commentary points to a gradual recovery in consumer demand following GST-related disruptions earlier in the year. 

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