Dabur margin slips as expenses outpace revenue growth
Consolidated net profit rose +12.09% year on year, but sequential revenue fell -5.35% and other income remained a material part of pre-tax profit.
Filed 04 Nov 2026, 18:06 IST · after market close · Dabur India Ltd (DABUR)
Key takeaways
- Consolidated revenue grew +11.65% year on year, but expenses grew faster at +12.58%, narrowing operating margin by 0.68 percentage points.
- Net profit rose +12.09% year on year to Rs 498.57 cr, with other income equal to 26.58% of profit before tax.
- Operating margin fell 1.94 percentage points sequentially to 17.75% as revenue declined faster than expenses.
Price around the results
Year-on-year growth came with operating pressure
Dabur’s consolidated revenue increased +11.65% year on year, while operating profit grew only +7.55%. Expenses rose faster than revenue, reducing operating margin by 0.68 percentage points to 17.75%. Net profit still increased +12.09%, helped by other income, while the tax rate rose 0.38 percentage points rather than flattering the result.
Sequential momentum weakened after Q1FY27
Revenue declined -5.35% sequentially, but expenses fell only -3.06%, so operating margin narrowed by 1.94 percentage points. Operating margin had risen from 15.20% in Q4FY26 to 19.69% in Q1FY27 before falling to 17.75% in Q2FY27, so the latest move reverses part of the prior quarter’s recovery rather than marking a third straight decline. Interest expense also increased +8.08% sequentially.
Other income remains important to reported profit
Other income of Rs 171.59 cr accounted for 26.58% of profit before tax, making the reported profit figure less dependent on operations alone. It grew +22.54% year on year, while operating profit grew +7.55%, explaining why pre-tax profit rose +12.65%. Dabur’s 17.75% operating margin was 7.06 percentage points above the 10.69% median for 52 Fast Moving Consumer Goods peers that have reported.
Market reaction is not yet available
The consolidated results were filed after market close, so there is no current market reaction to report. After the company’s last eight results, the stock fell six times and rose twice, with a median absolute move of 1.75%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,563 cr | ₹3,764 cr | -5.35% | +11.65% |
| Other income | ₹172 cr | ₹172 cr | -0.27% | +22.54% |
| Expenses | ₹2,931 cr | ₹3,023 cr | -3.06% | +12.58% |
| Operating profit | ₹632 cr | ₹741 cr | -14.70% | +7.55% |
| Operating margin (%) | 17.75% | 19.69% | — | — |
| Interest | ₹40 cr | ₹37 cr | +8.08% | -0.23% |
| Depreciation | ₹119 cr | ₹121 cr | -1.86% | +3.05% |
| Profit before tax | ₹646 cr | ₹756 cr | -14.57% | +12.65% |
| Tax | ₹147 cr | ₹169 cr | -13.30% | +14.60% |
| Net profit | ₹499 cr | ₹586 cr | -14.94% | +12.09% |
| EPS (₹) | ₹2.85 | ₹3.33 | -14.41% | +11.76% |
Operating margin of 17.75% compares with a Fast Moving Consumer Goods sector median of 10.69% across 52 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 17.75% after the 1.94-percentage-point sequential decline.
- Whether revenue momentum improves after the -5.35% sequential fall from Q1FY27.
- Whether other income remains near 26.58% of profit before tax.