Analysts not bullish on Dabur stock, but may outperform as growth recovers

Despite muted earnings in Q1FY26, analysts remain cautious on Dabur stock. However, there is potential for outperformance as earnings growth recovers in the coming quarters

The fast-moving consumer goods (FMCG) sector has seen deratings due to weak earnings, and the April-June quarter (Q1) of FY26 may mark the fourth consecutive quarter of muted earnings. The average P/E valuations for FMCG stocks are below the long-term mean.

 

Low taxes, liquidity easing, better monsoons, and a fall in some raw material costs could lead to a recovery. Overall demand remained stressed in Q1FY26, but FMCG players have taken price hikes to manage inflationary pressures. Volume growth is likely to be moderate, similar to the quarter ended March 2025 (Q4FY25). Gross margin pressure is also expected