Shares of Dabur India came under pressure on April 3, plunging 4.40% to ₹473.95 on the NSE, after the FMCG major released its Q4 FY25 business update indicating flattish revenue and margin contraction amid a challenging operating environment.
The company flagged a mid-single-digit decline in its India FMCG segment, driven by continued stress in general trade channels, although rural markets outperformed urban regions. In contrast, modern retail formats such as e-commerce and quick commerce saw sustained growth.
Dabur’s international business continued to be a silver lining, with the MENA region, Egypt, and Bangladesh expected to deliver strong double-digit growth in constant currency terms. On the domestic front, the foods portfolio, which includes its ‘Hommade’ and recently acquired ‘Badshah’ brands, is also likely to post double-digit growth.
Despite these positives, Dabur expects a 150-175 basis point contraction in its operating margins, attributed to inflationary pressure and weak volume traction across core categories.
Investors reacted sharply to the cautious outlook, dragging the stock lower. The company reaffirmed its focus on profitable growth amid macro headwinds and is expected to share a detailed financial report and segment-wise performance in the coming weeks.
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