Dabur India Shares Decline Over 7 Per Cent After Company Projects Flattish Revenue Growth For Q4FY25

Dabur Share Price: Shares of Dabur India Ltd fell over 7 per cent to hit an intraday low of Rs 458.2 apiece on the NSE in early trade on April 3. Notably the stock is on a losing spree, closing in the red consistently since March 27 and has tumbled over 10 per cent at the day’s low.

Dabur India shares declined after the company shared its projection for its consolidated revenue growth and operating profit margin in a business update filed to the exchanges on April 2.

The company said that its consolidated revenue for the fourth quarter of the current fiscal FY25 will remain flattish. The company also projected that its operating profit margin is likely to contract by 150 to 175 basis points on a year-on-year basis in the quarter under review.

The FMCG major stated that a delayed and truncated winter season coupled with a slowdown in urban markets is likely to affect its domestic business, leading to a decline in in mid-single digits, which in turn can lead to the flattish revenue growth. The company also mentioned that the impact of inflation and operating deleverage are likely to shrink its operating profit margin.

While the company projected its consolidated revenue to remain flattish and a shrinking in its margins, it anticipated strong performance in the international markets such as the Middle East and North Africa region, Egypt, and Bangladesh which in turn are expected to lead to robust growth for the company’s international business.

The company also expects its domestic food businesses such as 'Hommade' and 'Badshah' to perform well and post double-digit growth in Q4.

The company also added that rural demand has remained resilient and grow ahead of urban markets. In terms of channels, organised trade including Modern trade, E-commerce and Quick commerce maintained their growth momentum, while General trade continued to be under pressure. The company added that, FMCG volume trends have continued to remain subdued during the quarter.

Dabur reaffirmed its commitment to achieve profitable growth despite headwinds. Additionally the company also mentioned that it expects the tax-incentives announced in the Union Budget to receive consumption and bring about a recovery in the FMCG sector.

Dabur Q3 Results

Dabur India Ltd consolidated revenue for the third quarter of FY25 grew by 3.1 per cent to Rs 3,355 crore compared to Rs 3,255 crore in the corresponding quarter of preceding fiscal. The company’s consolidated net profit also increased by 1.85 per cent to Rs 515.82 crore in Q3FY25 compared to Rs 506.44 crore in Q3FY24. The company’s operating profit also grew by 2.1 per cent on a year-on-year basis to Rs 682 crore in the quarter ended December 31, 2024.

Dabur Share Price History

Shares of Dabur India have traded with a negative trend in the past year as the stock has declined over 12 per cent on the NSE. On a Year-to-Date basis the FMCG major’s shares have declined over 8 per cent. In six months the stock has tumbled over 20 per cent and in month the company’s shares have slipped over 4 per cent. In five days the company’s shares have declined over 8 per cent.

At the time of writing shares of Dabur India Ltd traded at Rs 463.3 apiece, down by 6.55 per cent on the NSE.