Company focuses on sharper marketing and rural expansion as revenues inch up
FMCG major Dabur India reported a 3% year-on-year increase in net profit, reaching ₹514 crore for the first quarter of FY26, up from ₹500 crore in Q1 FY25. Revenue grew modestly by 2% to ₹3,405 crore, but the quarter was marked by a 14.4% reduction in advertising and marketing expenses.
Dabur’s ad spends stood at ₹201.96 crore for the quarter, down from ₹235.89 crore in the corresponding period last year. However, on a sequential basis, ad expenses rose 14.5% from ₹176.36 crore in Q4 FY25. The ad-to-revenue ratio for the quarter was 15.68%, up from 12.57% in the year-ago period.
Mohit Malhotra, CEO of Dabur India, noted that the reduction in ad spends was a strategic recalibration. “We’ve become sharper with our marketing investments. Despite lower spends, we focused on expanding rural reach and utilising digital and modern trade channels more efficiently,” he said.
Unseasonal rainfall affected sales in summer-driven categories like beverages, but other segments performed well. Real Activ juices saw 20% growth, oral care (toothpaste) rose 7.3%, and home care posted over 10% growth.
Dabur’s continued rural push yielded results, with direct distribution expanding to 1.52 million outlets and village coverage rising to 1.33 lakh villages.
In international markets, Dabur recorded 13.7% growth in constant currency, led by strong performances in the UK, Turkey, and Africa.
