Dabur India Q1 profit rises 3% to ₹514 crore as rural demand outpaces urban

Rural markets continued to outperform urban for the fifth quarter; Dabur's sales rose despite weather-hit summer portfolio and modest urban recovery

Home-grown fast-moving consumer goods (FMCG) major Dabur India reported a 2.8 per cent year-on-year increase in net profit at ₹513.9 crore for the first quarter of financial year 2026 (Q1FY26), as rural markets continued to outpace urban demand for the fifth consecutive quarter.

 

The company had reported a net profit of ₹500 crore in the same period last year. Net sales rose 1.7 per cent to ₹3,404.6 crore, compared to ₹3,349.1 crore a year ago. Profit before interest, depreciation, and tax (PBIDT) increased 3.5 per cent to ₹811.4 crore.

 

Market share gains across 95% of portfolio 

“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.

 

 

The company reported that rural growth outpaced urban by 390 basis points (bps), both in value and volume terms. However, the gap between rural and urban growth narrowed during the quarter, indicating a slow but steady recovery in urban consumption. This gap had stood at 460 bps in value terms and 500 bps in volume terms in the March quarter.

 

Dabur expanded its rural footprint by around 10,000 villages during the quarter, bringing its total rural coverage to 1.33 lakh villages and 1.52 million outlets.

 

Weather hits beverages, but core portfolio holds up 

Unseasonal rains impacted the company’s summer-centric portfolio, particularly beverages and glucose. Excluding the seasonal portfolio, Dabur reported 7 per cent growth in business, with ex-seasonal volume growth at 3.5 per cent.

 

Digestives, toothpaste, and juices see strong growth 

Dabur recorded steady growth across key categories, including digestives, toothpaste, hair care, skin care, and home care.

 

“The Toothpaste business reported a 7.3 per cent growth during the first quarter. The ‘100% Fruit Juice’ portfolio under the Real Activ brand grew by 20 per cent, while the digestives portfolio grew by 7.7 per cent,” the company said.

 

The domestic Badshah spices segment grew 6.5 per cent during the quarter. Dabur’s international business rose 13.7 per cent in constant currency terms. The UK business registered a 41 per cent increase, while the Turkey business grew 36 per cent.