Dabur Q1 Results: Profit Jumps 15%, Revenue Crosses Rs 3,700 Crore

Dabur saw a 15% rise in its consolidated net profit to Rs 591 crore, according to financial results data with regards to the quarter ended June 30, as per an exchange filing from the company on Monday. The company's profit in the preceding financial year was Rs 514 crore for the same aforementioned time period.

The firm's revenue saw a 10.5% uptick to Rs 3,764 crore, compared to Rs 3,405 crore in the year-ago period. The Ebitda (earnings before interest, taxes, depreciation and amortisation) was up 10.9% to Rs 741 crore from Rs 668 crore in the previous fiscal. The Ebitda margin contracted to 19.7% from 19.6%. 

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Dabur Q1FY27 Highlights (YoY)

• Net Profit Up 15% to Rs 591 crore versus Rs 514 crore 
• Revenue Up 10.5% to Rs 3,764 crore versus Rs 3,405 crore 
• EBITDA Up 10.9% to Rs 741 crore versus Rs 668 crore
• EBITDA Margin at 19.7% versus 19.6% 

According to the company's commentary on its conference call, the rural India has continued to outperform urban markets for the eighth consecutive quarter. The gap between urban and rural demand growth has narrowed. And urban growth is supported by the strong performance of modern trade and quick commerce.

Mohit Malhotra, the chief executive officer of the company stated that it gained 102bps in market share. The executive stated that the compnay is focusing on premiumization.

Consumer preference for ayurvedic oral care continued to support growth, with Dabur outperforming the overall toothpaste market. The honey segment delivered high single-digit growth and gained 150 basis points in market share. The food and beverages portfolio posted strong results, with the food business continuing to grow at a double-digit pace.

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Management said cost pressures persisted across multiple markets due to elevated inflation and geopolitical developments, but remained confident of delivering sequential revenue growth despite the uncertainty.

The Badshah spices business has grown to around Rs 400 crore from Rs 220 crore at the time of acquisition, and management said it was pleased with the brand's performance. Management also noted that seasonality plays a significant role in the glucose and juice segments. The 100% juices category grew 45% during the quarter, with management adding that there are no issues in the juice category and that the food and beverages portfolio continues to deliver healthy growth.