Dabur India’s share price has crashed 7.57% to an intra-day low of Rs 458.20 after it announced muted guidance for Q4 FY25 while reporting its provisional quarterly update. Dabur expects the consolidated revenue to be flattish in Q4 FY25.
Dabur cautious about future growth outlook
In its quarterly update, the company said during Q4, general trade continued to be under pressure. Overall, FMCG volume trends continued to be subdued during the quarter. However, rural continued to be resilient and grew ahead of urban markets. “India’s FMCG business is likely to decline in the mid-single digits due to delayed and truncated winters and a slowdown in urban markets. Due to the impact of inflation coupled with operating deleverage, we anticipate Q4 operating profit margin to contract by around 150-175 basis points y-o-y,” read the filing.
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However, the company believes that it can capitalise on the consumption growth stimulus that the government provided in the Union Budget 2025-26.
The company is positive in its international business. Its MENA region, Egypt, and Bangladesh markets are likely to post strong performance, leading to robust double-digit growth in constant currency terms.
Apart from that, the brokerage house Motilal Oswal has a ‘Buy’ call on the stock.
Dabur India’s Q3 result
The FMCG major reported a consolidated net profit of Rs 516 crore in Q3 FY25, a marginal increase of 2% year-on-year, compared to Rs 506 crore posted in the same quarter a year ago. Its revenue from operations rose 3% YoY to Rs 3,355 crore in the third quarter of the current financial year, as against Rs 3,255 posted in the same period of the last fiscal.
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The share price of Dabur India has fallen 10% in the last five trading sessions. The stock has declined by 5.4% in the previous one month and erased investors’ wealth by 20% in the past six months. Dabur India’s share price has dropped over 12% in the previous one year.
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