Dabur's operating margin rebounds, but stays below its Q3FY26 peak
Revenue grew faster than expenses both YoY and QoQ, while other income remained a material contributor to pre-tax profit.
Filed 29 Jul 2026, 17:00 IST · after market close · Dabur India Ltd (DABUR)
Key takeaways
- Standalone revenue grew +8.82% YoY while operating profit rose +10.41%, lifting operating margin by 0.29 percentage points.
- Net profit increased +11.05% YoY, but other income accounted for 22.63% of pre-tax profit.
- Operating margin rebounded 5.09 percentage points QoQ to 19.94%, though it remained below Q3FY26's 21.80%.
Price around the results
Standalone profit growth outpaced revenue in Q1FY27
Dabur's standalone revenue grew +8.82% YoY, with expenses rising slightly slower at +8.43%, allowing operating profit to increase +10.41%. QoQ revenue rose +26.06% and operating profit grew +69.20% as expenses increased by 18.54%. Net profit grew +11.05% YoY to Rs 452.41 cr, while EPS rose +10.87% to Rs 2.55.
Margin recovered from Q4, but other income still mattered
Operating margin expanded 0.29 percentage points YoY and 5.09 percentage points QoQ because revenue growth exceeded expense growth in both comparisons. The tax rate was broadly stable YoY, down 0.07 percentage points, but rose 0.83 percentage points QoQ. Other income contributed 22.63% of pre-tax profit, so reported earnings were not driven entirely by operations.
Margin direction improved after the Q4FY26 trough
The 19.94% operating margin was a clear recovery from 14.85% in Q4FY26, but remained below the 21.80% recorded in Q3FY26. Dabur's margin was 3.79 percentage points above the 16.15% median for the 11 Fast Moving Consumer Goods peers that had reported the same quarter.
Management cited mixed portfolio trends
Management said unseasonal rainfall in the first half of the quarter affected beverages, although the business recovered in May and June. It said the culinary portfolio grew in the high twenties with broad-based brand performance, while hair oils and Odonil gained market share. Management also attributed continued momentum in Lal Dant Manjan to a new campaign with Ravi Kishan.
No immediate market reaction after the post-close filing
The standalone results were filed after market close, so there was no immediate stock reaction to report. Across the last eight results, the stock rose twice and fell six times, with a median absolute move of 2.48%, providing a generally negative historical reaction pattern.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,687 cr | ₹2,132 cr | +26.06% | +8.82% |
| Other income | ₹131 cr | ₹147 cr | -11.34% | +12.75% |
| Expenses | ₹2,152 cr | ₹1,815 cr | +18.54% | +8.43% |
| Operating profit | ₹536 cr | ₹317 cr | +69.20% | +10.41% |
| Operating margin (%) | 19.94% | 14.85% | — | — |
| Interest | ₹22 cr | ₹23 cr | -6.66% | +25.69% |
| Depreciation | ₹67 cr | ₹67 cr | -0.28% | +6.14% |
| Profit before tax | ₹578 cr | ₹374 cr | +54.65% | +10.95% |
| Tax | ₹125 cr | ₹78 cr | +60.80% | +10.59% |
| Net profit | ₹452 cr | ₹296 cr | +53.03% | +11.05% |
| EPS (₹) | ₹2.55 | ₹1.67 | +52.69% | +10.87% |
Operating margin of 19.94% compares with a Fast Moving Consumer Goods sector median of 16.15% across 11 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The culinary portfolio grew in the high twenties with broad-based growth across brands.
New initiatives
- Lal Dant Manjan launched a new campaign with Ravi Kishan.
Competition
- The hair oils portfolio registered market share gains.
- Odonil strengthened its position and gained market share.
Problems & risks
- Unseasonal rainfall in the first half of the quarter impacted the beverage business.
What to watch
- Whether standalone operating margin holds above 19.94% after the Q1FY27 rebound.
- Whether other income remains near 22.63% of pre-tax profit.
- Whether the beverage business sustains its reported recovery after the rainfall disruption.