Dabur Share Price & Q1 FY26 Analysis: Profit Grows 3%, Stock Rises

Dabur India’s Q1 FY26 net profit rose ~3% to ₹514 crore, despite weak weather-hit beverages. Rural-led demand and international growth lifted confidence, while the share price rose ~2–3% post-results.

Dabur India (NSE: DABUR) reported its Q1 FY26 results with net profit of ₹513.9 crore, up ~2.8–3.0% YoY, and revenue at ₹3,405 crore, up ~1.7–2.0% YoY. While unseasonal rains dented the beverage portfolio, rural demand and market-share gains across core categories sustained momentum. Markets responded positively—Dabur share price rose over 2% to ₹537–547 following the results. Analysts reiterated growth potential amid margin resilience and expanding distribution.

Q1 FY26 Financial Overview

Revenue, Profit & Margins

Revenue from operations: ₹3,404.6 crore (AAPROX. +1.7 % YoY)
Net profit (PAT): ₹513.9 crore (↑2.8–3.0 % YoY)
Operating profit growth: ~2 %, exceeding topline growth

Management attributed weaker performance in cold‑weather reliant categories (beverages, glucose) to earlier-than-usual monsoon, which compressed summer sales. Excluding these, underlying non-seasonal business grew ~7 %.

Segment Performance & Growth Drivers

Rural vs Urban Demand

Rural markets continued outperforming urban, leading overall recovery. Dabur expanded distribution, reaching 1.52 million outlets and coverage in 133,000 villages, boosting scale in hinterlands.

Category-Wise Performance

Toothpaste grew by ~7.3%, with Red Paste and Meswak leading.
Digestives up ~7.7%, Hair care ~7%, Home care ~10.1%, Skin & salon ~9.2%.
Real Activ juices grew ~20%, commanding increased market share.

International markets grew ~13.7%, with stronger performance in MENA, Turkey, and Egypt.

Dabur Share Price Reaction & Analyst Sentiments

Stock Movement

Shares climbed up to 3.53% intraday, touching ₹547.7—strongest intraday gain since early July.
Settled with ~2% or ₹529–534 levels, outperforming the Nifty decline that day.

Broker Outlook

Jefferies raised target price to ₹610 (Buy) citing margins and urban demand revival.
UBS Global maintained Sell rating but raised TP slightly.
Morgan Stanley retained underweight view with TP ₹396 due to beverage headwinds.

Key Financial Metrics & Valuation

According to Equity Screener and ET data:

P/E Ratio: ~51× as of Q1 FY26
P/B Ratio: ~8.3×
ROE: ~16–19%, ROCE: ~20–24%, EBITDA margins: ~22.8%

Institutional holding: ~11.9% FII, ~16% DII, promoter stake ~66.2%. Dividend yield stands at ~1.5% with recent interim dividend of ₹5.25 per share.

Outlook & Investment Thesis

Short-Term Catalysts

Recovery in summer portfolio once demand normalises
Commodity price easing (palm oil, tea) improving margins
Strong rural and international demand trends continue to underpin growth

Risks Ahead

Unpredictable monsoon and weak beverage category
Elevated input costs affecting gross margins (~75 bps contraction)
Competitive intensity in consumer-packaged goods segment

Long-Term Positives

Consistent brand strength in Ayurveda-based FMCG
Expanding distribution (1.5M outlets) and rural coverage
Global footprint in emerging markets
Stable promoter & institutional ownership at comfortable levels

FAQs

Q1. What is the current Dabur share price after Q1 FY26 results?

Shares rose ~2% on results day, intraday high at ₹547.7, closing near ₹537–534 zone.

Q2. What drove the 3% rise in net profit?

Despite beverage drag from early monsoon, rural demand, international sales growth, and price hikes supported margins and delivered ~2.8–3% PAT growth.

Q3. Should I buy Dabur now?

Analysts remain mixed—Jefferies is bullish with ₹610 TP, while others remain cautious on weather-sensitive categories. Dabur’s historical resilience and valuation support long-term interest.

Q4. How does Dabur compare to its FMCG peers?

With a P/E of ~51× and P/B ~8.3×, Dabur trades at a premium to peers like Godrej Consumer or Marico, justified by strong rural outreach, brand equity, and steady margins.

Q5. What are the major financial highlights for Q1 FY26?

Revenue: ₹3,405 Cr (+1.7–2%)
Profit after tax: ₹513.9 Cr (+2.8–3%)
Rural growth ahead of urban, category gains across home and personal care.

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Conclusion

Dabur’s Q1 FY26 results underscore its resilience amid macro headwinds and weather-related disruptions. While beverage categories took a hit, strong rural growth, international momentum, and category-led gains buoyed performance. The Dabur share price reaction (+2–3%) reflects investor confidence, while analysts remain cautiously optimistic about future recovery. Prudent investors should watch demand trends, commodity cost shifts, and quarterly momentum before concluding the investment case.