Dabur Q1 Results: Profit beats estimates, but volume growth misses Street view

Dabur India delivered another quarter of broad-based growth despite navigating a difficult operating environment marked by persistent inflation, volatile commodity prices and geopolitical uncertainty in the Middle East.

While the FMCG major reported a better-than-expected profit and its third consecutive quarter of double-digit earnings growth, domestic volume growth of 5% fell short of CNBC-TV18's expectation of a 6-8% increase, tempering an otherwise strong set of numbers.

For the quarter ended June 30, 2026, the company posted a consolidated net profit of ₹586 crore, up 15.3% from ₹508 crore in the corresponding period last year, comfortably ahead of the CNBC-TV18 poll estimate of ₹573 crore.

Consolidated revenue rose 10.6% year-on-year to ₹3,764.3 crore, broadly in line with expectations, while EBITDA increased 11% to ₹741.2 crore. Operating margin expanded marginally to 19.7% from 19.6% a year earlier, matching Street estimates.

India's FMCG business grew 9.5% during the quarter, supported by an underlying domestic volume growth of 5%. While the company continued to post healthy underlying demand, the volume print missed CNBC-TV18's estimate of a 6-8% rise, suggesting consumption growth remained resilient but softer than the Street had anticipated.

According to Global Chief Executive Officer Mohit Malhotra, disciplined cost management under Project Samriddhi, operational efficiencies and calibrated price increases helped cushion the impact of elevated input costs and deliver another quarter of double-digit profit growth.

Home & Personal Care leads growth; premium brands continue to outperform

Growth remained broad-based across Dabur's three key business verticals. Home & Personal Care emerged as the strongest performer, expanding 12.3%, while the Food & Beverages business grew 7.2% and Healthcare reported 5.5% growth.

Within the portfolio, shampoos led the charge with a 23% increase, followed by Hair Oils, which grew 17.6%. Oral Care advanced 9%, while the toothpowder business accelerated 13.1%. The Skin & Salon portfolio, led by brands such as Gulabari, Fem and OxyLife, grew 8.1%. Home Care also posted 6% growth despite supply-chain disruptions arising from the conflict in the Middle East.

The Healthcare segment continued to witness healthy momentum, with the Digestives portfolio growing 11.2% as Hajmola, Isabgol and Pudin Hara all recorded double-digit gains. OTC brand Honitus surged 28%, while health juices rose 24%. Dabur Honey, the company's flagship health supplement brand, grew 8%.

Food and beverages also delivered encouraging numbers. The Foods business expanded 29.2%, while the Badshah spices portfolio grew 13.2%. Although unseasonal rains affected beverage demand early in the quarter, sales recovered over the remaining months, helping the beverages business return to positive territory. Premium offerings continued to outperform, with Real Activ Juices growing 42% and Coconut Water surging 73%, reflecting rising consumer preference for health and wellness-focused products.

International business, rural demand remain key growth drivers

International operations remained another bright spot, with overseas revenue growing 15.5% in rupee terms. Bangladesh led growth with a 34.3% increase, followed by Egypt at 28.4%, Sub-Saharan Africa at 28%, Turkey at 26.9% and the UK at 21.9%. The MENA business also grew 8.6%, despite disruptions caused by the ongoing regional conflict.

Management noted that rural demand continued to outpace urban consumption for the eighth consecutive quarter, although the gap narrowed as modern trade and quick commerce supported urban recovery. Syndicated data showed rural demand growing 6.2%, compared with 4.6% in urban markets during the quarter.

Dabur also highlighted that its premium brands grew at twice the pace of its regular portfolio, while new product launches such as Siens and Cheers contributed 2.6% of revenue, reinforcing the company's focus on innovation and premiumisation as key drivers of long-term growth.