Dabur Q3 profit jumps 10% despite input pressures, rural demand stays ahead of urban market

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Summary

The company says the quarter saw broad-based growth across categories and geographies, even as cost pressures persisted.

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Mohit Malhotra, Chief Executive Officer, Dabur India Limited
Mohit Malhotra, Chief Executive Officer, Dabur India Limited | Credits: Dabur

Dabur India Ltd reported a steady performance in the December quarter, with profit growth outpacing revenue amid continued input cost pressures and a clear outperformance of rural markets over urban India.

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The ayurveda-focussed FMCG major posted a 10.1% rise in net profit before exceptional items at ₹575 crore for the third quarter ended December 31, 2025, compared with ₹522 crore a year ago. Operating profit rose 7.7% to ₹734 crore. Consolidated revenue grew 6.1% year-on-year to ₹3,559 crore, up from ₹3,355 crore in the corresponding quarter last year. The Indian FMCG business recorded a 6% growth during the period.

The company said the quarter saw broad-based growth across categories and geographies, even as cost pressures persisted.

“Dabur delivered a steady quarter, with healthy volume-led growth across our key business verticals and geographies,” said Mohit Malhotra, chief executive officer, Dabur India Ltd. “As demand conditions improve, the combination of favourable macroeconomic indicators and expectations of supportive policy measures, reinforced by recent GST changes, positions us well for the quarters ahead.”

Rural demand continues to lead

Rural markets continued to outperform urban centres for the eighth consecutive quarter. Syndicated data showed a 330-basis-point gap between rural and urban growth, a trend that Dabur said was also reflected in its internal numbers.

“Our distribution network today covers more than 133,000 villages, giving us one of the deepest rural reaches in the industry,” Malhotra said.

During the quarter, Dabur added 50,000 outlets across urban and rural India, taking its total reach to over 8.5 million outlets. This makes Dabur the second most widely distributed FMCG company in the country, according to the company. In urban markets, e-commerce and modern trade continued to support growth, aided by premiumisation trends.

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Market share gains across categories

The India business saw market share gains across several key categories. Dabur’s hair oils segment posted a 19.1% growth during the quarter, supported by a 193-basis-point increase in market share, taking its total share to around 20%, the highest ever for the company. Dabur said that in Hindi-speaking markets, every second household now uses a Dabur hair oil brand.

The company also reported a 131-basis-point gain in air fresheners, with market share reaching 44%. In juices and nectars, Dabur gained 195 basis points, while its share in the 100% juices category rose by about 646 basis points. Toothpaste sales grew around 10%, driven by Dabur Red and Meswak, while the foods business grew 14%. Hajmola posted a 7% increase, and the skin and salon portfolio grew 6.6%.

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International business revenue rose 11.1%, led by strong growth in Turkey, MENA, the U.S., and Bangladesh.

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