Dabur cuts ad spends by 14.38% to Rs 201.96 crore in Q1 FY26

New Delhi: Home-grown FMCG major Dabur India on Thursday reported a reduction of 14.38% in advertising spends to Rs 201.96 crore in Q1 FY26, compared to Rs 235.89 crore in the corresponding quarter last year.

However, on a QoQ basis, the adex jumped by 14.4%, with ad spends rising from Rs. 176.40 crore in Q4 FY25.

The company reported an increase of 2.8% in its consolidated net profit to Rs 508.29 crore in the June quarter of FY26 as it faced inflationary headwinds and unseasonal rains, which impacted the performance of the beverage portfolio.

The company had posted a net profit of Rs 494.35 crore in the April-June quarter a year ago, according to a regulatory filing from Dabur India.

Its revenue from operations was marginally up by 1.65% at Rs 3,404.58 crore in the June quarter. It was Rs 3,349.11 crore in the corresponding quarter of the previous fiscal.

"Unseasonal rains during peak summer months impacted the performance of Dabur's summer-centric portfolio, particularly in categories like beverages and glucose. Excluding this seasonal portfolio, the business grew by 7% in Q1 of 2025-26," said Dabur India in its earnings statement.

However, Dabur India's standalone revenue from operations, which mainly consists of the domestic business, was down 1.77% to Rs 2,469.51 crore in the June quarter.

Dabur's total consolidated expenses were at Rs 2,885.53 crore, up 1.75% year-on-year.

Total income of Dabur India, which includes other income, was up 2% to 3,548.55 crore in the reporting quarter.

Chief Executive Officer Mohit Malhotra said, "Despite facing inflationary headwinds during the quarter, Dabur delivered a 2% growth in operating profit, outpacing topline growth and underscoring the strength of our brands and execution." Over the industry trends, Dabur said for five consecutive quarters, rural markets are outperforming urban, reflecting resilience and rising consumer confidence across the heartland.

"This quarter too, the growth from Bharat stood 390 bps ahead of urban India, both in value and volume terms. Dabur has made remarkable strides in expanding its distribution footprint with direct reach surging by 63,000 outlets year-on-year, now spanning 1.52 million outlets, up from 1.45 million in Q1 2024-25," he said.

Sequentially, urban markets, which have a large base, have shown signs of improvement, riding on the strong performance of modern trade and emerging channels such as quick commerce, though it still lags rural growth.

"We recognise that rural consumers are the growth engine for us. Through targeted initiatives such as expanding our rural footprint, enhancing last-mile connectivity, and rolling out tailored product formats, we have deepened our engagement and trust in these communities," Malhotra said.

According to Dabur, in the June quarter, it has a "market share gain" across 95% of its portfolio.

Segment-wise, Dabur said its consolidated revenue from the consumer care business went up 5.36% to Rs 2,704.92 crore.

However, its revenue from the food business declined 11.7% to Rs 620.86 crore in Q1/FY26.

Dabur's revenue from the retail business was down 11.6% to Rs 26.16 crore. While the other segment, which primarily includes guar gum and pharmaceuticals, was up 9.2% to Rs 43.84 crore.

Its international business achieved a 13.7% growth in constant currency terms in the first quarter of FY26.

The company, which owns power brands such as Dabur Chyawanprash, Dabur Honey, Dabur Honitus, PudinHara, Lal Tail, Dabur Amla, Dabur Red Paste, Real, gets over 25% revenue from global markets.

"The UK business reported a 41% growth, while the Turkey business grew by 36%. Our Namaste business (US) grew by 30%, Sub-Saharan Africa grew by 20%, and MENA (Middle East North Africa) reported a 10.1% growth. The Bangladesh business also reported a 10.2% constant currency growth," it said.