Dabur: Premiumisation is changing the growth mix

# Dabur: Premiumisation is changing the growth mix Dabur India Limited is moving beyond volume-led FMCG growth and putting greater emphasis on premium products, innovation and digital-first channels. The company says its premium brands are currently growing at twice the pace of regular brands. **What is changing:** Dabur's strategy now places premiumisation alongside core-brand investment and innovation. The company has launched products such as Dabur A2 Cow Ghee in the super-premium segment and Real Cheers in cocktail mixers, while expanding its presence across e-commerce and quick commerce. The reason this matters is simple. Premium products can increase revenue per consumer without requiring the same increase in volumes. They can also help improve product mix and potentially support margins. Dabur's FY26 results provide some evidence of this strategy working. Gross margin expanded 30 basis points to 48.3%, while operating margin improved to 18.6%. The company also reported strong growth through e-commerce and modern trade. **My view:** Dabur's next phase is less about simply gaining distribution and more about increasing the value of each consumer relationship. Its massive distribution network gives the company a strong base, but premiumisation needs to translate into sustained volume growth and margin improvement. The risk is that premium products can depend more heavily on urban consumers and discretionary spending. Rural demand therefore remains important. **What I'm watching:** premium-product growth, gross margin, rural consumption, quick-commerce sales and new-product contribution. **Stance:** The key test for Dabur is whether premiumisation can create sustainable revenue and margin growth without weakening its mass-market franchise. **Disclosure:** I am a SEBI Registered Research Analyst. Please refer to the applicable disclosures before taking any investment decision.