Dabur profit rises 3 pc to Rs 508.3 cr in Q1, revenue inches up 1.6 pc to Rs 3,404.58 cr

New Delhi, Jul 31 (PTI) Home-grown FMCG major Dabur India Ltd on Thursday reported an increase of 2.8 per cent in its consolidated net profit to Rs 508.29 crore in the June quarter of FY26 as it faced inflationary headwinds and unseasonal rains, which impacted the performance of the beverage portfolio.

The company had posted a net profit of Rs 494.35 crore in the April-June quarter a year ago, according to a regulatory filing from Dabur India.

Its revenue from operations was marginally up by 1.65 per cent at Rs 3,404.58 crore in the June quarter. It was Rs 3,349.11 crore in the corresponding quarter of the previous fiscal.

"Unseasonal rains during peak summer months impacted the performance of Dabur's summer-centric portfolio, particularly in categories like beverages and glucose. Excluding this seasonal portfolio, the business grew by 7 per cent in Q1 of 2025-26," said Dabur India in its earnings statement.

However, Dabur India's standalone revenue from operations, which mainly consists of the domestic business, was down 1.77 per cent to Rs 2,469.51 crore in the June quarter.

Dabur's total consolidated expenses were at Rs 2,885.53 crore, up 1.75 per cent year-on-year.

Total income of Dabur India, which includes other income, was up 2 per cent to 3,548.55 crore in the reporting quarter.

Chief Executive Officer Mohit Malhotra said: "Despite facing inflationary headwinds during the quarter, Dabur delivered a 2 per cent growth in operating profit, outpacing topline growth and underscoring the strength of our brands and execution." Over the industry trends, Dabur said for five consecutive quarters, rural markets are outperforming urban, reflecting resilience and rising consumer confidence across the heartland.

"This quarter too, the growth from Bharat stood 390 bps ahead of urban India, both in value and volume terms. Dabur has made remarkable strides in expanding its distribution footprint with direct reach surging by 63,000 outlets year-on-year, now spanning 1.52 million outlets, up from 1.45 million in Q1 2024-25," he said.

Sequentially, urban markets, which have a large base have shown signs of improvement, riding on the strong performance of modern trade and emerging channels such as quick commerce, though it still lags rural growth.

"We recognise that rural consumers are the growth engine for us. Through targeted initiatives such as expanding our rural footprint, enhancing last-mile connectivity, and rolling out tailored product formats, we have deepened our engagement and trust in these communities," Malhotra said.

According to Dabur, in the June quarter, it has a "market share gains" across 95 per cent of its portfolio.

Segment-wise, Dabur said its consolidated revenue from consumer care business went up 5.36 per cent to Rs 2,704.92 crore.

However, its revenue from the food business declined 11.7 per cent to Rs 620.86 crore in Q1/FY26.

Dabur's revenue from retail business was down 11.6 per cent to Rs 26.16 crore. While other segment, which primarily includes guar gum and pharmaceuticals, was up 9.2 per cent to Rs 43.84 crore.

Its international business achieved a 13.7 per cent growth in constant currency terms in the first quarter of FY26.

The company, which owns power brands such as Dabur Chyawanprash, Dabur Honey, Dabur Honitus, PudinHara, Lal Tail, Dabur Amla, Dabur Red Paste, Real, gets over 25 per cent revenue from global markets.

"The UK business reported a 41 per cent growth while the Turkey business grew by 36 per cent. Our Namaste business (US) grew by 30 per cent, Sub-Saharan Africa grew by 20 per cent, and MENA (Middle East North Africa) reported a 10.1 per cent growth. The Bangladesh business also reported a 10.2 per cent constant currency growth," it said.

Shares of Dabur India Ltd on Thursday settled at Rs 529.55 apiece on the BSE, up 1.46 per cent from the previous close. PTI KRH HVA