Dabur share price soars 5% to 4-month high after June quarter business update
The company released its Q1FY26 business update on Friday, with projections broadly in line with brokerage estimates, prompting analysts to maintain their optimistic outlook on the stock.
Dabur expects its Home and Personal Care (HPC) segment to perform well, led by strong growth in the oral, home, and skincare categories. Key brands such as Dabur Red Toothpaste, Odonil, Odomos, and Gulabari are projected to post robust growth along with market share gains.
Additionally, the company anticipates strong double-digit growth in its healthcare segment, with Dabur Honitus expected to deliver over 40% growth during the quarter.
Its international business is also expected to post double-digit constant currency growth, led by key markets such as MENA, Turkey, Bangladesh, and the US-based Namaste business.
The company stated that its beverage portfolio was impacted during the quarter due to unseasonal rains and a shorter summer. However, products like Activ Juices and Activ Coconut Water saw good momentum, with growth expected in the mid-teens. Dabur plans to focus more on the Activ portfolio going forward to align with evolving consumer trends and reduce the seasonality of its juices business.
Due to the decline in the beverages segment, Dabur expects its consolidated revenue to grow in low single digits. Consolidated operating profit growth is expected to marginally lag revenue growth.
With its refreshed strategic vision and favorable macroeconomic conditions—such as an above-average monsoon, good agricultural output, easing inflation, and consumption-focused government measures—Dabur expects revenue growth to regain momentum and trend higher in the coming quarters.
"The fundamentals of the business remain strong, and we are continuing to invest behind our brands, expand our distribution reach, build a strong back end, and capture efficiencies to deliver good growth in revenue and profitability for the year," the company said in its Friday exchange filing.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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