FMCG major Dabur faces continued margin pressures, growth challenges

Many analysts have downgraded growth and margin expectations in response to the update

Dabur’s pre-quarterly update for Q3FY25 disappointed the market with the share dropping by 3.9 per cent. Growth was slower than expected and inflation hit margins. The management said that the fast-moving consumer goods (FMCG) consumption in rural markets was resilient and continued to grow faster than in urban markets. While activity in the general trade channel was muted, alternative channels like modern trade, e-commerce, and quick commerce delivered stronger growth.

 

While Home & Personal Care (HPC) is expected to grow in mid to high single digits in Q3FY25, health care is expected to be flat. Beverages will report muted performance