Dabur India on Wednesday reported an 8.4% year-on-year decline in net profit for the January–March quarter, at Rs 320.13 crore. The figure fell short of Bloomberg’s consensus estimate of Rs 324 crore, as tepid urban demand, particularly in general trade channels, continued to weigh on performance.
Revenue from operations for the quarter rose a marginal 0.6% year-on-year to Rs 2,830.14 crore, below Bloomberg’s projection of Rs 2,846 crore. The company’s Ebitda also missed expectations, registering at Rs 426.8 crore against a projected Rs 438 crore.
Dabur’s underperformance in urban general trade was a key drag, despite double-digit growth across modern trade, e-commerce, and rural channels. CEO Mohit Malhotra acknowledged the pressure in urban consumption and laid out a refreshed seven-point strategic plan aimed at delivering a double-digit compound annual growth rate (CAGR) by FY28.
Central to this plan is a sharpened focus on Dabur’s core portfolio, which includes brands like Dabur Red, Real, Chyawanprash, Honey, Hajmola, Odonil, and Vatika, accounting for roughly 70% of total business. The company intends to step up investments in these high-conviction brands to gain market share, while also pruning underperforming categories such as vedic teas and diapers to reallocate capital more efficiently.
In addition, Dabur plans to drive premiumisation across its portfolio to bolster margins. It has identified growth segments such as hair serums, conditioners, and health gummies, and is preparing to launch zero-sugar, preservative-free beverages as part of this strategy. Malhotra said this move aligns with shifting consumer preferences and will help Dabur pivot toward higher-value offerings.
To further address urban trade inefficiencies, Dabur aims to consolidate its network of stockists to optimise return on investment and reduce cost-to-serve in metro markets. It also plans to strengthen its presence in high-growth channels, including e-commerce, quick commerce, and modern trade, which have shown sustained momentum.
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The company is also eyeing inorganic growth through mergers and acquisitions in segments like new-age healthcare, wellness foods, and premium personal care. Malhotra described this approach as part of building a future-fit portfolio that aligns with evolving consumer demands.
Looking ahead, Dabur expects sequential recovery from the April–June quarter and is targeting high single-digit to low double-digit revenue growth in FY26. For the full year FY25, net profit declined to Rs 1,740.42 crore from Rs 1,811.31 crore in FY24. The board has recommended a final dividend of Rs 5.25 per equity share for the fiscal.
