Dabur India Q1 FY27 Results (NSE: DABUR)
Signal: Growth reaccelerated
The read
Dabur delivered a solid quarter with 10.6% revenue growth and 15.3% PAT growth, reversing the weak Q4FY26 trend. Consumer Care led the revival; margins held steady despite raw material cost pressure. The debt-to-equity ratio rose to 0.20 from 0.13 (borrowings for capex/working capital), but interest coverage at 24.95x remains strong.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,764.39 Cr | 10.6% | 23.9% |
| EBIT | ₹756.15 Cr | 14.0% | |
| Net profit | ₹586.16 Cr | 15.3% | |
| EPS | ₹3.33 | 14.8% | |
| EBIT margin | 19.7% |
P&L walk
Revenue grew 10.6% YoY, driven by strong Consumer Care segment (+10.9% YoY). Operating margin improved 10bps YoY to 19.7%, with employee cost ratio declining 30bps. Net profit up 15.3% YoY, supported by higher other income and controlled costs; EPS rose 14.8% to ₹3.33.
Segments
Consumer Care segment (80% of revenue) drove growth with revenue +10.9% YoY and segment result +12.3% YoY; Food business grew 6.2% YoY with result +17.1% YoY. Retail segment remained loss-making (₹-0.69 Cr) but narrower loss vs preceding quarter. Subsidiaries include newly formed Pravaah Consumer Group INC (USA).
Key positives
- Revenue grew 10.6% YoY to ₹3,764 Cr, highest in four quarters.
- Consumer Care business revenue +10.9% YoY, segment result +12.3% YoY.
- Operating margin expanded 10bps YoY to 19.69% despite raw material cost ratio +60bps.
- Net profit margin improved 64bps YoY to 15.57%.
- EPS grew 14.8% YoY to ₹3.33.
- Employee cost ratio declined 30bps YoY.
Key concerns
- Raw material cost as % of revenue increased 60bps YoY (42.5% vs 41.9%), indicating input cost pressure.
- Retail segment continues to report losses (₹-0.69 Cr).
- Debt equity ratio rose to 0.20 (from 0.13 in Q1FY26) due to higher borrowings.
- Other income (₹172.6 Cr) contributed 22.8% of PBT, inflating net profit growth.
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