Dabur Share Price Surges 5% as Q1FY26 Update Signals Strong FMCG Growth, Urban Demand Recovery

July 7, 2025: Dabur India Ltd’s stock grabbed the spotlight on Monday as it surged over 5% intraday, touching a four-month high of ₹571.70 per share on the NSE. The rally came after the company shared an upbeat Q1FY26 business update, highlighting positive momentum in its India operations, especially with signs of recovery in urban consumption.

Urban Demand Bounces Back, Boosting Sentiment

The consumer goods major, known for household names like Dabur Red, Honitus, and Real Juice, said it witnessed a pickup in demand across urban areas. This comes as a relief after months of sluggish consumer sentiment. According to Dabur, sequential growth was visible across segments, thanks to higher volumes and stronger market activity in the FMCG sector.

Analysts noted that Dabur’s Q1 performance was largely in line with brokerage expectations, leading several firms to retain their ‘buy’ rating on the stock.

Home & Personal Care (HPC) Segment Shows Strong Promise

Dabur’s HPC division, which includes popular products like Dabur Red Toothpaste, Odonil, Odomos, and Gulabari, saw robust growth. The company expects these brands to not only grow in volume but also gain market share, riding on increasing consumer demand and brand loyalty.

Healthcare Products Shine Bright

Dabur’s Healthcare segment is projected to deliver double-digit growth, led by strong performance from Dabur Honitus, which is expected to post over 40% growth this quarter. Rising demand for health and immunity-boosting products has given a significant boost to this vertical.

Global Business Continues to Expand

The company’s international business has been another bright spot. Dabur expects double-digit growth in constant currency terms, particularly from MENA, Turkey, Bangladesh, and the US-based Namaste brand. Global demand for Ayurvedic and natural wellness products continues to drive this growth.

Beverage Segment Takes a Hit but Future Looks Bright

The only hiccup this quarter came from Dabur’s beverage segment, which faced pressure due to unseasonal rains and a shorter summer season. Despite this, products like Activ Juices and Activ Coconut Water performed well, registering mid-teen growth. The company plans to invest more in its Activ range to reduce dependence on seasonality and align with health-conscious consumers.

Overall Growth Outlook Remains Positive

While the beverages drag may limit Q1 consolidated revenue growth to low single digits, Dabur remains confident about the future. Operating profit is expected to grow slightly slower than revenue, but the company believes it will bounce back strongly in upcoming quarters.

Dabur is banking on a favorable macro environment—including a normal monsoon, strong agricultural output, cooling inflation, and government-led consumption incentives—to support future growth.

In its official filing to the exchanges, Dabur said:

“Our business fundamentals remain strong. We’re continuing to invest in our brands, expand distribution, and build efficiencies to drive sustainable growth in both revenue and profitability.”