Dabur India (DABUR) Q1 25/26 earnings summary

Executive summary

• Achieved sequential and year-over-year improvement in both domestic and international markets, with consolidated revenue reaching ₹3,404.58 crore and net profit at ₹508.29 crore for the quarter.

• Rural markets outperformed urban for the fifth consecutive quarter, with rural growth outpacing urban by 400 bps.

• 95% of the portfolio gained market share, and power brands in healthcare posted double-digit growth.

• International business delivered robust double-digit growth, with strong performances in key regions.

• Operating margin maintained despite high inflation and weather headwinds; operating profit and PAT grew ahead of topline.

Financial highlights

• Consolidated sales grew 7% excluding the seasonal portfolio; reported growth was 1.7% due to seasonal impact.

• International business grew 13.7% in consumer currency and 12.7% in INR terms.

• Operating margin for the quarter was 19.62%, up from 15.08% in the previous quarter and 19.56% year-over-year.

• PAT increased by 2.8% YoY; net profit margin stood at 14.93%, up from 11.05% in the previous quarter.

• Volume growth for the ex-seasonal portfolio was 3%-3.5%; reported volume declined by 1%.

Outlook and guidance

• Full-year guidance is for high single-digit growth; next quarter expected to see double-digit growth due to a low base.

• Focus on premiumization, tactical price increases, and cost-saving initiatives to counter inflation and unseasonal rainfall.

• Operating margins are expected to improve significantly year-over-year, driven by premiumization and better mix.

• The Board of Directors and Audit Committee have reviewed and approved the unaudited results, with statutory auditors expressing an unmodified opinion.