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Dabur India delivered a steady performance in the December quarter, with earnings largely in line with Street expectations and growth supported by rural demand, portfolio market share gains and a resilient international business.
The FMCG major reported a net profit of ₹553.6 crore for Q3, up 7.3% year-on-year, though marginally below the CNBC-TV18 poll estimate of ₹562 crore. Revenue rose 6% year-on-year to ₹3,558.6 crore, broadly in line with estimates of ₹3,560 crore.
EBITDA increased 7.7% year-on-year
to ₹734 crore, marginally above expectations, while operating margin stood at 20.6%, unchanged versus estimates and improving from 20.3% a year earlier.
The India FMCG business reported 6% growth during the quarter, with rural demand outperforming urban markets for the eighth consecutive quarter. Syndicated data showed a 330-basis-point growth gap in favour of rural markets, a trend mirrored in Dabur’s internal numbers.
Dabur said its total reach expanded by 50,000 outlets during the quarter, taking distribution to over 8.5 million outlets, making it the second most distributed FMCG company in India. Its rural footprint now spans more than 133,000 villages.
Category performance remained strong, led by a 19.1% growth in the Hair Oils business, which helped Dabur achieve a 193-basis-point market share gain, taking its overall share to a record ~20%. The Foods business grew 14%, Toothpaste rose around 10%, Juices & Nectars gained 195 basis points in market share, while Air Fresheners touched a 44% market share after a 131-basis-point gain.
International business grew 11.1% year-on-year, driven by strong performance across Turkey (15.4%), MENA (12.5%), the US (19.3%) and Bangladesh (20.2%).
The quarter also included an exceptional expense of ₹15.05 crore (net of tax) towards employee benefits following the implementation of new labour codes.
Commenting on the results, CEO Mohit Malhotra said Dabur delivered healthy, volume-led growth supported by innovation, brand building and improving demand conditions, adding that favourable macro indicators and recent GST changes position the company well for sustainable growth ahead.
Ahead of the results, shares of Dabur India closed 1.11% lower at ₹510 on the NSE.
