Shares of Dabur India slipped 4 percent to Rs 461 apiece on May 8 after the company posted a subdued performance for the March quarter. Most brokerages maintained their ratings, with the company guiding for high-single digit sales growth in FY26.
Macquarie retained a "neutral" rating on Dabur with a target price of Rs 480 per share, noting that the Q4 operational performance was broadly in line. “The company expects a gradual recovery, supported by the impact of a 3.5 to 4 percent price hike implemented in the fourth quarter,” it said.
Nuvama Institutional Equities, however, cut its target price to Rs 615 per share from Rs 635, citing sluggish urban demand.
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“We are trimming our FY26 and FY27 estimates by 4.8 percent and 3 percent, respectively,” the brokerage stated. It highlighted that the home and personal care (HPC) segment underperformed due to a high base, healthcare took a hit from a mild winter, and beverages were impacted by an unseasonal quarter.
Citi maintained its “Sell” rating but raised the target price to Rs 470 from Rs 450. It flagged continued pressures on both growth and margins, stating that Dabur ended FY25 with a broadly weak performance. Citi noted it would be watching to see whether the company’s refreshed strategy could lead to a sustainable pickup.
For Q4, Dabur reported an 8.4 percent year-on-year decline in consolidated net profit to Rs 320.13 crore. Revenue from operations rose a marginal 0.5 percent year-on-year to Rs 2,830 crore.
EBITDA for the quarter came in at Rs 426.8 crore, down 8.6 percent from the previous year. Margins stood at 15.1 percent compared to 16.6 percent a year ago.
Within segments, the healthcare business—about 30 percent of overall revenue—was down 4.7 percent year-on-year, impacted by a milder winter. Home and personal care, the company’s largest segment, declined 3.3 percent.
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