Dabur declines as Q4 updates disappoints Street

The demand trajectory across both urban and rural markets in India has shown a slight improvement sequentially, although it falls short of a full recovery, said Dabur in an exchange filing

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26 Aug, 2025 12:21

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Dabur India shares fell over 2.5 percent in the morning trade on April 6 after the company said it will report mid-single-digit revenue growth in Q4 FY23, indicating no significant improvement from the previous few quarters. The company had clocked 3.5 percent topline growth in Q3 and 6 percent in Q2.

The FMCG major has also increased spends on its brands, leading to pressure on the operating margin, which is expected to be lower by 200-250 basis points compared to Q4 FY22 margin of 18 percent. One basis point is one-hundredth of a percentage point.

At 10:15 am, the stock was quoting at Rs 534.40 on the NSE, down 2.49 percent. The stock has been sideways over the past one year, down by 1.8 percent.

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"The demand trajectory across both urban and rural markets in India has shown a slight improvement sequentially, although it falls short of a full recovery," the company said in an exchange filing.

While urban markets have returned to positive volume growth, rural markets still remain muted, it added.

Dabur derives about 47 percent of its revenue from rural India, which has been under stress due to inflationary pressures. The company's net profit has fallen on a year-on-year basis over the past four quarters.

In segmental performance, F&B business is expected to report strong double-digit growth, while personal care categories witnessed slowdown.

The quarter also marks the consolidation of Badshah Masala. "The business is in the process of being integrated and is tracking as per expectations," said the company.

Analysts are largely positive on the stock, with Trendlyne data suggesting an average target of Rs 638.22. This represents an upside of 16.88 percent from the current market price.

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