Earnings Review
Dabur PAT up most QoQ in 10 yrs, unseasonal rain hits sales
This story was originally published at 17:48 IST on 31 July 2025
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--Dabur Apr-Jun consol net profit INR 5.14 bln
--Analysts saw Dabur Apr-Jun consol net profit at INR 4.92 bln
--Dabur Apr-Jun consol net profit INR 5.14 bln vs INR 5.00 bln year ago
--Dabur Apr-Jun consol revenue INR 34.05 bln vs INR 33.49 bln year ago
--Dabur Q1 consol consumer care ops sales INR 27.05 bln vs INR 25.67 bln
--Dabur Q1 consol food business sales INR 6.21 bln vs INR 7.03 bln yr ago
--Dabur Apr-Jun consol operating margin 19.62% vs 19.56% year ago
--Dabur:Urban demand showed QoQ improvement signs, still lags rural growth
--Dabur: Operating profit in Apr-Jun up 2%, outpaced revenue growth
--Dabur: Gained market share across 95% of co's portfolio
--Dabur: Unseasonal rains during peak summer affected Apr-Jun growth
--Dabur Apr-Jun consol operating profit INR 6.68 bln, up 2% on year
--Dabur Apr-Jun consol EBITDA INR 8.12 bln, up 3.5% on year
--Dabur Apr-Jun intl business revenue up 13.7% in constant currency terms
--Dabur Apr-Jun consol revenue up 2% on year in constant currency terms
--Dabur Apr-Jun consol revenue, excluding seasonal business, up 7% on year
--Dabur: Apr-Jun seasonal business revenue declined in double digits
By Kabir Sharma
MUMBAI – Unseasonal rains, high inflation, and disruptions due to Operation Sindoor limited the topline growth of Dabur India Ltd. in the quarter ended June. Net revenue from operations of the company rose a marginal 1.7% on year. Sequentially, the consumer goods company recorded a 20.3% jump in revenue as the preceding quarter was a particularly dismal one. The company reported a consolidated revenue of INR 34.05 billion for the June quarter. Operating profit growth of 2% surpassed the growth in the company's top line.
The net profit of the company reflected the muted growth in top line, rising 2.8% on year to INR 5.14 billion. Unseasonal rains during peak summer months impacted the performance of Dabur India's summer-centric portfolio, particularly in categories like beverages. Excluding this seasonal portfolio, the revenue grew 7% in Apr-Jun.
However, the bottom line of the company saw a 60.5% growth compared to the previous quarter supported by the rural segment which continued its growth momentum and outpaced urban by 400 basis points. This was the sharpest sequential growth in the net profit in the last 10 years, according to data compiled by Informist.
For five consecutive quarters, rural markets have outperformed urban areas, where the company continues to struggle. "While urban markets, riding on the strong performance of Modern Trade and emerging channels, have shown signs of sequential improvement, it still lags rural growth. We recognize that rural consumers are the growth engine for us. Through targeted initiatives such as expanding our rural footprint, enhancing last-mile connectivity, and rolling out tailored product formats, we have deepened our engagement and trust in these communities," Dabur India Chief Executive Officer Mohit Malhotra said.
The consumer care business of Dabur India rose to INR 27.05 billion from INR 25.67 billion a year ago. Riding on growing demand for Dabur Red Paste and the premium brand Meswak, Dabur India's toothpaste business reported a 7.3% growth for the first quarter. The skin and salon portfolio grew 9.2% while the hair care business posted a 7% growth during the quarter.
Food related operations of the company witnessed a slight de-growth to INR 6.21 billion from INR 7.03 billion year ago. The beverages segment was hit the most due to unseasonal rains, despite 20% growth in the Real Activ brand.
The consolidated revenue of the company was up 2% in constant currency terms. The consolidated operating profit rose 2% on year to INR 6.68 billion. The consolidated earnings before interest, taxes, depreciation and amortisation grew 3.5% on year to INR 8.12 billion. Consolidated operating margin of the company rose 6 basis points on year to 19.62% in Apr-Jun.
Dabur India's international revenue grew 13.7% in constant currency terms. The UK business reported a 41% growth while the Turkey business grew by 36%. Business from the Sub-Saharan Africa region grew 20%, and Middle East and North Africa reported a 10.1% growth. The Bangladesh business reported 10.2% constant currency growth.
Despite the muted growth in revenue in Apr-Jun, Dabur India reported market share gains across 95% of its portfolio during the quarter. Real nectars gained 207 basis points market share while the juices portfolio reported a 141-bps improvement in market share. Dabur India also reported a 214-bps rise in market share of hair oils, taking the share of the overall hair oil market to the highest-ever at 19%. The company gained 183-bps in air fresheners market share and 111-bps in chyawanprash market share.
A cut in advertising expenses also failed to do much for the bottom line of the company. The consumer goods giant reduced its advertising spend sharply by 14.4% to INR 2.02 billion. A 39% on-year rise in purchase of stock-in-trade also weighed on the bottom line of the company. The company purchased INR 3.43 billion of stock-in-trade in the quarter ended June.
On Thursday, Dabur India shares ended at INR 529 on the National Stock Exchange, up 1.34% from the previous close. End
Edited by Ashish Shirke
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