Dabur tumbles over 7% on lacklustre Q4 update; Stock trades at 4-year low

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Shares of Dabur India tumbled over 7 per cent on Thursday to see the worst in over six months as their volume continued to be flattish during the final quarter of the previous financial year. 

 

Dabur's stock fell as much as 7.57 per cent during the day to ₹458.2 per share, the worst intraday fall since October 2, 2024. The stock pared some losses to trade 6 per cent lower at ₹465.65 apiece, compared to a 0.29 per cent decline in Nifty 50 as of 2:06 PM. Shares hit a four-year low during the session to trade at the lowest level since July 2020. 

 

Shares of the company extended their losses to their fourth straight day on Thursday. In the last four sessions, the stock has nosedived by over 10 per cent, taking the yearly fall to 8 per cent. This compares to a decline of 1.6 per cent in the benchmark Nifty50 in 2025. Dabur has a total market capitalisation of ₹82,554.5 crore. 

 

Driven by delayed and truncated winters and a slowdown in urban markets, India's fast-moving consumer goods (FMCG) business is likely to decline in the mid-single digits, the consumer giant said in an exchange filing on Wednesday. As a result, the Ghaziabad-headquartered company's consolidated revenue is expected to be subdued during the fourth quarter, it added.

 

Further, due to the impact of inflation coupled with operating deleverage, we anticipate the fourth quarter operating profit margin to contract by around 150-175 basis points year-on-year (Y-o-Y).

 

The company remained committed to driving profitable growth despite the current headwinds in demand. "Our internal efforts, such as investing in brand building, enhancing go-to-market strategies, and increasing operational efficiency, will enable us to achieve this objective."  

 

Further, Dabur expects the incentives outlined in the Union budget to stimulate consumption and facilitate a recovery in the FMCG sector.

 

In the third quarter, Dabur India added 3 per cent to ₹533.70 after the company's consolidated net profit advanced 1.85 per cent to ₹515.82 crore on a 3.08 per cent increase in revenue from operations to ₹3,355.25 crore in Q3FY25 over Q3FY24.

 

In the third quarter, the FMCG major reported a 1.85 per cent increase in consolidated net profit to ₹515.82 crore. The company had posted a net profit of ₹506.44 crore in the year-ago period, Dabur India said. Its revenue from operations was up 3 per cent to ₹3,355.25 crore during the quarter under review. It was ₹3,255.06 crore in the corresponding quarter of the previous fiscal year.