Dabur India reported a 7.2% rise in net profit to ₹1,895 crore for the financial year 2025-26, supported by gross margin expansion and disciplined cost management. Consolidated revenue from operations increased by 5% to ₹13,193 crore, reflecting resilience amidst inflationary pressures and competitive intensity. The company’s operating margin improved by 15 basis points to 18.6%, while gross margins expanded by 30 basis points to 48.3%.

The company’s performance was underpinned by strategic price increases, a sharper focus on premiumisation, and cost-saving initiatives under Project Samriddhi, which captured savings of approximately ₹87 crore. Dabur’s portfolio of 23 billion-rupee brands, including flagship Real and Dabur Red Paste, continued to drive growth, with the company maintaining its position as the second most distributed FMCG company in India, reaching 8.5 million stores.

Financial Performance

The company delivered sustained profitability across key metrics. Profit After Tax grew by 7.2% to ₹1,895 crore, while operating profit saw a corresponding increase in margins. The board has recommended a dividend of ₹8.25 per share for the fiscal year, resulting in a total dividend payout of ₹1,463.3 crore and a payout ratio of 77.21%.

Strategic Initiatives and Sustainability

During the year, Dabur launched ‘Dabur Ventures’, a ₹500 crore investment platform aimed at partnering with high-potential, digital-first brands. The company also commenced construction of a new greenfield manufacturing facility in Tindivanam, Tamil Nadu, expected to begin operations by the end of FY 2026-27.

On the sustainability front, Dabur achieved 107% water positivity, surpassing its target trajectory, and sustained a plastic-waste-positive status. The company eliminated coal usage across operations and achieved 98% sustainable sourcing of high deforestation risk materials. Renewable energy usage reached 65% in India operations and 53% at the consolidated level.

Citi has reiterated its Sell rating on Dabur India while revising its target price downward to ₹425 from the earlier ₹440. The brokerage attributed the target price cut to a lower valuation multiple, driven by the broader consumer sector and market de-rating.

Analyst Call at a Glance

The following table summarises the key details of Citi's revised call on Dabur India:

Key Takeaways

• Citi has maintained its Sell stance on the stock, signalling continued bearishness.
• The target price has been cut by ₹15, moving from ₹440 to ₹425.
• The revision is linked to a lower valuation multiple applied to the stock, reflecting the de-rating seen across the broader consumer sector and the wider market.