Dabur shares rise 3% as analysts flag positive outlook post Q1 results

Dabur shares rose 3 per cent after it reported a 2.8 per cent increase in net profit for the June quarter

Shares of Dabur rose by over 3 per cent after the company reported a 2.8 per cent year-on-year (Y-o-Y) marginal increase in net profit for the June quarter of the current financial year (Q1FY26). 

 

The consumer giant's stock rose as much as 3.53 per cent during the day to ₹547.7 per share, the steepest intraday rise since July 7 this year. The stock pared gains to trade 1.6 per cent higher at ₹537.6 apiece, compared to a 0.4 per cent decline in Nifty 50 as of 11:40 AM.  

Shares of the company rose for the third straight session and currently trade at 5.7 times the average 30-day trading volume, according to Bloomberg. The counter has risen 6.8 per cent this year, compared to a 4.4 per cent advance in the benchmark Nifty 50. Dabur has a total market capitalisation of ₹95,433.40 crore.  Track LIVE Stock Market Updates Here

Dabur Q1 results 

The consumer giant reported a consolidated net profit of ₹513.91 crore for Q1 FY26, a 2.8 per cent increase from ₹500.12 crore in the same quarter last year. On a sequential basis, net profit surged over 60 per cent from ₹320.13 crore in Q4 FY25.

 

Revenue from operations rose 1.7 per cent Y-o-Y to ₹3,404.58 crore, compared to ₹3,349.11 crore in Q1 FY25. Sequentially, revenue grew 20.3 per cent from ₹2,830.14 crore in the previous quarter.

 

Dabur's international business reported a 13.7 per cent growth in constant currency terms, with the United Kingdom business reporting a 41 per cent growth, while the Turkey business grew by 36 per cent, the company said.

Dabur management commentary 

“This performance was anchored by solid market share gains across 95 per cent of our portfolio, reflecting the trust of our consumers, the resilience of our brands and the agility of our teams to navigate challenges and deliver ahead of expectations,” said Mohit Malhotra, Chief Executive Officer, Dabur India.

 

Unseasonal rains impacted the company’s summer-centric portfolio, particularly beverages and glucose.   ALSO READ | Smallcap stock zooms 107% in 3 months, nears record high; here's why

Analysts on Dabur Q1 results 

Motilal Oswal remains optimistic on Dabur despite near-term margin pressures. While recent price hikes have not fully offset inflationary headwinds, the brokerage expects gradual improvement supported by disciplined cost control, operational efficiencies, and a favourable macro environment.

 

Dabur’s extensive rural and urban reach, with a distribution footprint spanning approximately 0.13 million villages and 7.9 million outlets, including 1.5 million direct outlets, positions it better than peers to tap into consumption growth across segments. Motilal Oswal reiterated a 'Buy' rating with a target price of ₹600. 

 

Centrum Broking has upgraded Dabur to a 'Buy' rating, stating that the worst appears to be behind the company. Inventory stabilisation, beverage segment outlook, improving demand trends, and rural recovery are the reasons that the brokerage cited for updating the stock. 

 

Antique Broking noted that rural India continued to outperform urban markets for the sixth straight quarter. However, Dabur’s management also pointed to a sequential recovery in urban demand, supported by modern trade and emerging channels. The brokerage maintained a 'Hold' rating on the stock. The target price has been revised to ₹562 per share (from ₹524).