Dabur India Share Price Rises 3.4% Post Q1 Update, Expects Slower Profit Growth in Q1 FY26; Should You BUY?

Dabur India share price jumped over 3.4% today after the company shared a business update for the first quarter of FY26. However, the FMCG giant has warned that its operating profit might not keep pace with revenue growth this time. The main reason behind this is the Sluggish juice sales, because of unexpected rains and a shorter summer season, as mentioned by the company.

What Dabur Said About Q1 FY26 Performance

Dabur, which owns popular brands like Real Juice, Dabur Honey, Vatika hair oil, and Dabur Red toothpaste, said it expects revenue growth in the low single digits for Q1. But operating profit is likely to rise at a slower rate, mainly because the beverage segment, which is led by Real packaged juices, took a hit. Real juices alone made up 17% of Dabur's total revenue in FY25, Dabur said in an exchange filing dated July 4th.

The summer season is usually a key period for juice and beverage sales. But this year, unseasonal rainfall and a shorter summer window affected demand, which pulled down overall performance in the beverage category.

On the positive side, Dabur said it is seeing demand recovering steadily in India's urban markets. The April to June quarter showed signs of improvement in consumer buying, especially volume growth in cities. That's a relief for FMCG players who've been battling weak demand for the past few quarters due to high inflation and reduced discretionary spending by urban consumers.

Dabur Share Price Today

Investors responded positively to the update. Dabur shares opened at Rs. 501.90 today, up from the Friday's close of Rs. 495.10. The stock rose by 3.38% intraday. As of 9:56 Am Dabur shares were trading at Rs. 509.40 up 2.89%. Over the past 5 days, it has gained 4.80%, though it's still down nearly 18% compared to the same time last year.

Nuvama Institutional Equities has maintained a 'Buy' rating on Dabur India, setting a target price of Rs. 615. The brokerage noted that Dabur's Q1FY26 business update is largely in line with estimates, projecting 2.1% YoY consolidated revenue growth, compared to 7% in the same quarter last year. While the domestic business is expected to decline by 3% YoY, international operations are likely to expand by 17% YoY.

Nuvama also highlighted that the healthcare portfolio, led by Dabur Honitus, is expected to post double-digit growth, and the Home and Personal Care (HPC) segment should also perform well. Additionally, products like Activ Juices and Coconut Water are forecast to grow in the mid-teens range in Q1FY26E.

Dabur Q4 FY25 Financial Highlights

Earlier this year on May 7th, Dabur India released its Q4 results for FY25, where the company reported a net profit of Rs 320.13 crore, a decline of 8.31% year-on-year. However, its quarterly revenue stood at Rs. 2,830.14 crore, slightly higher than the Rs. 2,814.64 crore posted in the same quarter last year. For the full financial year, Dabur's total revenue was Rs. 12,563 crore, up from Rs. 12,404 crore in the previous year.

Disclaimer: The information provided in this article is for general informational purposes only and does not constitute financial, investment, or credit advice. The views and recommendations mentioned are based on publicly available data and expert opinions at the time of writing. Neither the author nor GoodReturns endorses any specific product or financial decision. GoodReturns.in and its affiliates are not responsible for any loss or damage resulting from reliance on the information presented.