Dabur India Ltd Q1 FY27 Results Analysis: PAT Surges Double-Digit, Food Business Recovers

Dabur India Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 3,764.39 Cr (+10.57% YoY) and PAT growth of +15.32% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Dabur delivered a strong Q1 with double-digit revenue and PAT growth, accelerating from a weak prior year. The food business staged a notable recovery, and margins remained stable. However, input cost pressure and a sharp increase in debt levels warrant monitoring.

Key Investment Insights

Key Positives

• Consolidated revenue grew 10.57% YoY to Rs.3,764.39 cr, accelerating from 1.66% YoY in Q1 FY26.
• PAT grew 15.32% YoY to Rs.586.16 cr, outpacing revenue growth.
• Food business revenue grew 6.20% YoY (vs -11.71% YoY in Q1 FY26) and segment margin expanded 133 bps YoY to 14.29%.
• Consumer care segment revenue grew 10.94% YoY with margin expansion of 29 bps YoY to 24.10%.
• No exceptional items recorded; clean audit opinion on both consolidated and standalone results.
• Interest coverage ratio strong at 24.95x.

Risk Factors

• Cost of materials consumed as % of revenue rose 72 bps YoY to 42.54%, indicating input cost pressure.
• Total outstanding debt increased 59.9% YoY to Rs.2,328.71 cr, lifting debt/equity ratio to 0.20x from 0.13x.
• Current ratio declined to 1.34x from 1.74x a year ago, reflecting higher working capital intensity.