Dabur sees contraction in Q4 profit, decline in India revenue; shares tumble to 52-week low

New Delhi: Home-grown FMCG major Dabur expects its revenue to decline in March quarter impacted by slowdown in urban markets and contraction of 150-175 basis points in operating profit margin due to inflation.

Dabur expects its consolidated revenue to be "flattish" during Q4 FY25, the company said in its latest quarter updates filed on Wednesday late evening.

Following this update, shares of Dabur India tumbled on Thursday morning to its 52-week low at Rs 458.25. Though it revived later to Rs 464.55, it was still 6.25 per cent lower from the previous close.

Its key international markets, including the MENA region, Egypt, and Bangladesh, are likely to post strong performance, leading to robust double-digit growth. Dabur gets nearly one-fourth revenue from international business.

"However, due to delayed and truncated winters and slowdown in urban markets, India FMCG business is likely to decline in mid-single digits. As a result, Dabur's consolidated revenue is expected to be flattish during Q4 FY25," it said.

Moreover, due to impact of inflation coupled with operating deleverage, Dabur said it "anticipates Q4 operating profit margin to contract by around 150-175 basis points y-o-y".

However, the company said it remains committed to driving profitable growth despite the current headwinds in demand and expects a recovery in demand helped by incentives announced by the government in the recent budget.

"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. Furthermore, we anticipate that the incentives outlined in the recent Union budget will stimulate consumption and facilitate a recovery in the FMCG sector which Dabur is well-placed to capitalise on," said Dabur.

Over the FMCG sector, Dabur said the rural continues to be resilient and grew ahead of urban markets.

Moreover, in continuance of the previous trends, organised trade channels which include modern trade, e-commerce and quick commerce maintained their growth momentum, while general trade continued to be under pressure," it added.

"Overall, FMCG volume trends continued to be subdued during the quarter," it said.

Dabur owns power brands as Dabur Chyawanprash, Dabur Honey, Dabur PudinHara, Dabur Lal Tail, Dabur Amla, Dabur Red Paste, Real and Vatika.

According to Dabur, the update provides an overall summary of the performance and demand trends witnessed during the quarter ended March 31, 2025.

"This will be followed by detailed financial results and earnings presentation once the Board of Directors of the company approves the consolidated and standalone financial results for the quarter ended March 31, 2025," it said.