Dabur India Limited Earnings Summary — Q4 FY2026
Dabur India Reports Modest Revenue Growth Amid Soft Operating Margins
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 23.9% sequentially in Q1 FY2027.
- Revenue of ₹3,764 Cr is 10.6% higher year-on-year.
- Revenue has compounded at 13.8% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹591 Cr is 15.0% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 26.3% annualised across the period.
- Operating margin stands at 19.7% in Q1 FY2027.
- Operating margin expanded by 8 bps year-on-year.
- Over the last two years operating margin has expanded by 13 bps.
- PBT margin is 20.1%.
- Expense growth of 10.5% remained below revenue growth of 10.6%.
- Operating profit of ₹741 Cr is 11.0% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 73/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 3,764 | 3,038 | 3,559 | 3,191 | 3,405 | 2,830 | 3,355 | 3,029 | 3,349 | 2,815 |
| Expenses | Improving | 3,024 | 2,577 | 2,825 | 2,603 | 2,737 | 2,403 | 2,673 | 2,476 | 2,694 | 2,348 |
| Operating Profit | Improving | 741 | 461 | 734 | 588 | 667 | 427 | 682 | 553 | 655 | 466 |
| Operating Margin | Improving | 19.7% | 15.2% | 20.6% | 18.4% | 19.6% | 15.1% | 20.3% | 18.2% | 19.6% | 16.6% |
| Other Income | Improving | 173 | 175 | 126 | 140 | 144 | 141 | 129 | 152 | 129 | 129 |
| Interest | Stable | 37 | 40 | 31 | 40 | 35 | 39 | 44 | 47 | 33 | 35 |
| Depreciation | Stable | 121 | 122 | 117 | 115 | 114 | 117 | 109 | 111 | 109 | 107 |
| Profit Before Tax | Improving | 756 | 474 | 711 | 573 | 663 | 412 | 658 | 546 | 642 | 453 |
| Tax | Improving | 169 | 112 | 158 | 128 | 154 | 99 | 142 | 128 | 148 | 111 |
| Net Profit | Improving | 591 | 369 | 560 | 453 | 514 | 320 | 522 | 425 | 500 | 350 |
| Net Margin | Improving | 15.7% | 12.1% | 15.7% | 14.2% | 15.1% | 11.3% | 15.6% | 14.0% | 14.9% | 12.4% |
Key Takeaways
- Revenue for Q4 FY2026 grew 7.35% YoY to Rs. 3,038 Crores, showing stabilization in top-line recovery.
- Quarterly net profit rose 15.65% YoY to Rs. 362 Crores, though it fell significantly from Q3 levels due to seasonal patterns.
- Operating margins (OPM) remained flat YoY at 15%, reflecting persistent pressure on profitability compared to peak 20% quarters.
- The balance sheet remains strong with a low debt-to-equity ratio, even as borrowings increased slightly to Rs. 1,287 Crores.
- Rural consumption volatility continues to be a primary headwind for the company's volume growth trajectory.
- Dabur maintains its status as an 'Ayurvedic Compounder' with high profit stability but slow growth velocity.
- Interest expenses rose to Rs. 40 Crores for the quarter, reflecting higher debt servicing costs.
- Other Income saw a sharp spike to Rs. 175 Crores in Q4, significantly aiding the Profit Before Tax (PBT).
Management Guidance
Management remains focused on the 'Power Brands' strategy and maintaining dividend payouts above 70%, despite sluggish rural demand.
Sentiment Shift
Stable
While YoY growth improved, the stagnation in margins and continued low-single-digit volume growth in rural markets suggests no major breakout.
Outlook
Dabur faces a dual challenge of USFDA regulatory issues at its Silvassa plant and increasing competition from niche and large-scale Ayurvedic players. Growth is likely to remain in the mid-to-high single digits in the near term.
From the Annual Report (Key Quotes)
“Dabur India Limited is an established leader in the Ayurvedic and natural healthcare segment, maintaining a dominant market share.”
“Top-line growth has decelerated to a modest 5% CAGR over ten years, suggesting market saturation.”
“The financial profile is marked by high stability but low velocity.”
Official Quarterly Documents
This summary is AI-generated from Dabur India Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.