Dabur Q1 Results: Shares Rise 3% Amid 2.8% YoY Net Profit Increase

Dabur shares rose 3% after reporting a 2.8% YoY increase in net profit for Q1 FY26. Revenue from operations rose 1.7% YoY to ₹3,404.58 crore. Analysts remain optimistic despite near-term margin pressures, expecting gradual improvement supported by disciplined cost control and a favorable macro environment.

Dabur India Limited has reported a 2.8% year-on-year (YoY) increase in consolidated net profit for the quarter ended June 30, 2025, reaching ₹508 crore compared to ₹494 crore in the same quarter last year [2]. The company's revenue from operations stood at ₹3,405 crore, up 1.7% YoY from ₹3,349 crore in the corresponding quarter of the last financial year [3].

The company's share price responded positively to the news, rising by 3% on August 1, 2025, opening at ₹533.00 and trading at ₹539.95 by 9:41 AM [1]. Despite near-term margin pressures, analysts remain optimistic about the company's prospects, expecting gradual improvement supported by disciplined cost control and a favorable macro environment.

Dabur India's strong performance was driven by robust rural growth and international expansion. Rural markets continued to outperform urban markets, with growth in Bharat outpacing urban India by 390 basis points (bps) in both value and volume terms [3]. The company's rural direct outlet reach increased by 63,000 year-on-year to 1.52 million, and village coverage expanded by 10,000 to reach 1.33 lakh villages [3].

Internationally, Dabur's business delivered a strong 13.7% growth in constant currency terms, with key markets such as the UK, Turkey, and Sub-Saharan Africa performing well [3]. The company's international expansion underscores the growing demand for its portfolio across geographies.

However, unseasonal rains during peak summer months impacted the performance of Dabur's summer-centric portfolio, particularly in beverages and glucose [3]. Despite this, the company's diversified product mix and agile supply chain helped cushion the impact and maintain overall momentum.

Analysts have revised their target prices and ratings based on the company's first quarter financials. UBS has maintained a sell rating on Dabur, hiking the target price to ₹500 from ₹470, citing pockets of growth amid seasonal challenges [4]. Jefferies has maintained a buy rating, hiking the target price to ₹610 from ₹590, acknowledging the impact of unseasonal rains on revenue growth [4].

In conclusion, Dabur India's Q1 FY26 results demonstrate the company's resilience and strong performance in rural and international markets. Despite seasonal disruptions, the company's diversified product mix and agile supply chain have helped maintain overall momentum. Analysts remain optimistic about the company's prospects, expecting gradual improvement supported by disciplined cost control and a favorable macro environment.

References:
[1] https://www.angelone.in/news/market-updates/dabur-india-share-price-rose-2-percent-on-aug-1-net-profit-rises-in-q1-fy26-results
[2] https://retail.economictimes.indiatimes.com/news/food-entertainment/personal-care-pet-supplies-liquor/dabur-india-reports-47-yoy-profit-growth-to-rs-508-crore-in-q1-2025/123017704
[3] https://economictimes.indiatimes.com/markets/stocks/news/dabur-q1-results-cons-pat-grows-3-yoy-to-rs-514-crore-revenue-up-2/articleshow/123019044.cms
[4] https://www.ndtvprofit.com/markets/stock-picks-today-maruti-suzuki-hul-dabur-swiggy-eicher-motors-tvs-motors-on-brokerages-radar