Rural Demand needs to be watched: Dabur Chief

While rural India has continued to outpace urban India, the demand needs to be monitored amid El-Nino, patchy monsoons and inflationary pressures, Dabur Global Chief Executive Officer Mohit Malhotra said.

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In its first quarter earnings announcement, the company said Rural India continues to be a bright spot in the consumption landscape, outperforming urban markets for the eighth consecutive quarter.

The gap between urban and rural demand growth has narrowed with urban growth supported by strong performance of modern trade, quick commerce and other emerging channels, the company said in the first quarter earnings release.

“As per syndicated data, rural demand grew 170 basis points ahead of urban demand in the first quarter, with growth of 6.2 per cent in rural versus 4.6 per cent in urban markets,” Dabur India Ltd Global Chief Executive Officer Mohit Malhotra said.

“We believe this reflects a healthy broadening of India’s consumption story across urban and rural India. While the consumption landscape is becoming more balanced, rural demand needs to watched especially in view of El-Nino, patchy monsoons and rising inflationary pressures,” he said.

Dabur India Ltd reported 15 per cent increase in net profit at Rs 591 Crore in first quarter of 2026-27, backed by 10.6 per cent jump in consolidated revenue at Rs 3,761 crore.

“This marks the third straight quarter of double-digit profit growth for Dabur. The quarter unfolded against a backdrop of persistent inflationary pressures, heightened geopolitical uncertainties in the MENA region, and volatile commodity markets. In this hyperinflationary environment, our disciplined cost management with Project Samriddhi, operational efficiencies and judicious price increases helped report healthy profit growth during the quarter,” Malhotra said.

India FMCG business reported 9.5 per cent growth with an underlying Volume growth of 5 per cent.

 

 

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