Dabur India's shares are in focus today after the FMCG giant announced a 7% year-on-year (YoY) increase in consolidated net profit for the third quarter of fiscal year 2026. The company's consolidated net profit rose to ₹560 crore for the December quarter, up from ₹522 crore in the same period last year. Dabur's revenue from operations also saw a 6% YoY increase, climbing to ₹3,559 crore from ₹3,355 crore in the corresponding quarter of the previous fiscal year.
On a sequential basis, the company's performance also improved, with PAT rising 24% from ₹453 crore in Q2FY26, and revenue increasing 11% from ₹3,191 crore in the July-September quarter. Dabur has attributed this growth to the expansion of its FMCG business, strong gains in the Indian market, and double-digit international growth. The FMCG business witnessed a 6% growth during the quarter, demonstrating broad-based performance across various markets and categories.
Dabur’s India business saw key brands delivering category-leading growth, with market share gains across major segments. The company reported a 193 bps improvement in the hair oils category, achieving its highest-ever market share in the segment. The company's operating profit increased by 7.7% during the quarter to ₹734 crore. Net profit before exceptional items also saw a 10% YoY increase, reaching ₹575 crore from ₹522 crore in the previous year.
However, analysts have offered mixed reactions to Dabur's Q3 results. According to a report by NDTV Profit, Dabur's Q3 profit rose marginally, aligning with analysts' estimates. The report noted that net profit attributable to shareholders increased by 1.6% YoY to ₹522 crore, compared to analysts' estimates of ₹509 crore. The top line was expected to come in at around ₹3,300 crore, but it has come in at ₹3,355 crore. Margins were in line with estimates, with analysts estimating roughly 20.3%, which is where it landed. Net profit was expected to decline by 1%, but it increased by around 1.6%. The consumer care business grew by around 4%, while the food business fell by 3%, and the retail segment remained flat.
GuruFocus highlighted some positive and negative points from the earnings call. Positive aspects included a 6.1% YoY consolidated revenue growth, driven by a 6% YoY growth in the domestic FMCG business, with a 3% volume growth. The Hair Care segment, particularly the Hair Oils Portfolio, showed robust growth of 19.1% YoY. The Toothpaste portfolio delivered strong growth of 10%, with brands like Dabur Red Toothpaste, Meswak, and Herb'l registering significant growth. The international business registered an 11% growth in INR terms, with notable performances in regions like MENA, Sub-Sahara Africa, and the UK and European Union. Operating profit grew by 7.7%, while PAT grew in double digits by 10.1% during the quarter, despite challenges like GST transition and high inflation.
Negative points mentioned included the Chyawanprash segment remaining flat due to excess inventory, the nectar portfolio remaining muted due to an unfavorable season, and the export and emerging market businesses being impacted by tariffs and geopolitical disturbances. There was also a one-time provision arising from changes in labor laws, which affected profitability, and high competitive intensity in the Oral Care segment.
