Dabur margin falls 5.43 points QoQ, while profit rises 15.75% YoY
YoY margin was broadly stable, but other income contributed 36.74% of pre-tax profit and operating margin remained 1.55 points below the FMCG peer median.
Filed 07 May 2026, 16:34 IST · after market close · Dabur India Ltd (DABUR)
Key takeaways
- Consolidated net profit rose 15.75% YoY to Rs 362.00 cr, helped by a 0.50 percentage-point decline in the tax rate and other income equal to 36.74% of pre-tax profit.
- QoQ revenue fell 14.63% while expenses declined only 8.79%, narrowing operating margin by 5.43 percentage points to 15.20%.
- The stock gained 3.77% on the first reaction, more than twice the 1.34% median absolute move after Dabur's past eight results.
Price around the results
March quarter margin reset after a strong Q3
Dabur's consolidated revenue fell 14.63% QoQ, and expenses fell less sharply at 8.79%, causing operating margin to contract by 5.43 percentage points. The YoY picture was steadier: revenue grew 7.35% while expenses rose 7.20%, lifting margin by 0.12 percentage points and net profit by 15.75%. At 15.20%, Dabur's operating margin was 1.55 percentage points below the 16.75% median for 26 FMCG peers that had reported.
Reported profit got material support from other income
Other income rose 23.29% YoY and accounted for 36.74% of pre-tax profit, so the earnings increase had a substantial non-operating contribution. The 0.50 percentage-point lower YoY tax rate also supported net profit growth. QoQ, the tax rate rose 1.43 percentage points and interest expense increased 28.44%, adding to the pressure below operating profit.
Management cited uneven category and weather effects
Management said un-seasonal rains in March affected Dabur Glucose sales, although the brand continued to gain market share. It said continued investment in the Dabur Amla campaign featuring Deepika Padukone supported consumption, while on-ground initiatives helped Nectars, Real Activ juices and coconut water gain market share. Management also reported growth in the twenties for the culinary portfolio, strong double-digit growth for Honitus, and market-share gains in hair oils and Odonil.
Initial stock reaction was unusual for Dabur
After the results, the stock rose 3.77% on the first reaction, with a 3.19% opening gap, 5.55 times normal volume and a 4.38% gain relative to the market. That was notably stronger than the 1.34% median absolute move after the past eight results, when the stock rose twice and fell six times. The initial gain did not persist over the measured window: the stock was down 9.66% after 15 sessions and 10.16% after 30 sessions.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,038 cr | ₹3,559 cr | -14.63% | +7.35% |
| Other income | ₹174 cr | ₹125 cr | +38.90% | +23.29% |
| Expenses | ₹2,576 cr | ₹2,825 cr | -8.79% | +7.20% |
| Operating profit | ₹462 cr | ₹734 cr | -37.09% | +8.19% |
| Operating margin (%) | 15.20% | 20.63% | — | — |
| Interest | ₹40 cr | ₹31 cr | +28.44% | +1.83% |
| Depreciation | ₹122 cr | ₹117 cr | +4.28% | +4.56% |
| Profit before tax | ₹474 cr | ₹711 cr | -33.39% | +15.00% |
| Tax | ₹112 cr | ₹158 cr | -29.09% | +12.60% |
| Net profit | ₹362 cr | ₹554 cr | -34.61% | +15.75% |
| EPS (₹) | ₹2.08 | ₹3.16 | -34.18% | +14.92% |
Operating margin of 15.20% compares with a Fast Moving Consumer Goods sector median of 16.75% across 26 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.77% | +4.38% |
| Next session | +0.73% | — |
| 5 sessions | -0.49% | +2.32% |
| 15 sessions | -9.66% | — |
| 30 sessions | -10.16% | — |
Volume on the results session was 5.55× its 20-day average.
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 reported growth in the twenties with broad-based growth across brands during the quarter.
- Dabur Honitus delivered strong double-digit growth during the quarter, supported by differentiated positioning for quicker cough relief without drowsiness.
New initiatives
- Dabur continued investing in the “Hair washing se pehle Oiling Ji” campaign featuring Deepika Padukone.
- On-ground execution and consumer-led initiatives drove engagement and offtakes for Nectars, Real Activ juices and coconut water.
Competition
- Dabur's hair oils portfolio gained market share.
- Dabur's Odonil portfolio strengthened its position and gained market share.
Problems & risks
- Dabur Glucose sales were impacted by un-seasonal rains in March 2026.
What to watch
- Operating margin versus the 15.20% reported in Q4FY26.
- Whether other income remains close to its 36.74% share of pre-tax profit.
- Revenue growth versus the +7.35% YoY recorded this quarter, including the impact of the March rain disruption on Dabur Glucose.