Dabur India shares the focus as net profit rises 7% in the third quarter. What do analysts say?

Shares of FMCG giant Dabur India could see action on Friday, January 30, after it reported a 7% year-on-year increase in consolidated net profit for the December quarter at Rs 560 crore, compared to Rs 522 crore in the same period last year. The profit after tax (PAT) accrues to the owners of the holding company. Revenue from operations for the third quarter of 2026 grew 6% year-on-year to Rs 3,559 crore, compared to Rs 3,355 crore in the corresponding quarter of the previous fiscal.

On a sequential basis, PAT rose 24% from Rs 453 crore in Q2FY26, while revenue rose 11% from Rs 3,191 crore reported in the July-September quarter.The company said its FMCG business registered 6% growth during the quarter, with broad-based performance across all markets and categories.

Net profit before exceptional items rose 10% year-on-year to Rs 575 crore from Rs 522 crore a year earlier, while operating profit rose 7.7% to Rs 734 crore during the quarter.

Business performance in India

In India, Dabur said its flagship brands have delivered category-leading growth along with market share gains in key segments. This was led by a 193 bps improvement in the hair oils category, taking Dabur’s overall market share in hair oils to an all-time high of around 20%. The company also reported a 131 basis point increase in air freshener market share, with total market share reaching 44%. In the Juices & Nectars segment, Dabur gained 195 basis points of market share, while in the 100% juices category, its share grew by around 646 basis points.

The Skin & Salon business grew 6.6% during the quarter, while Hajmola, the company’s flagship digestive products, posted 7% growth. The food sector recorded an increase of 14% in the third quarter.

International affairs

Dabur’s international business posted growth of 11.1% in the third quarter, driven by strong performance in key markets including Turkey, MENA, the US and Bangladesh.

Buy, sell or hold Dabur India stock?

Morgan Stanley has maintained its Underweight rating on Dabur India with an unchanged price target of Rs 400. This implies a downside of 21% from current market levels. The international brokerage noted that the company’s third-quarter performance remained weak but was largely expected. The brokerage highlighted continued pressure in the healthcare and beverage sectors, although demand showed sequential improvement in December. Dabur plans a price increase of around 2% in the fourth quarter, while growth in FY27 is expected to be mainly driven by volumes. Morgan Stanley also cited seasonality and weather as key risks to the company’s prospects.

(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)