Dabur India Shares Slip Over 2.5% Post Q4FY25 results

Shares of FMCG major Dabur India opened significantly lower on Thursday, 8 May, following the announcement of its financial results for the fourth quarter of fiscal year 2025. The weak performance, largely anticipated after the company's earlier business update, has prompted several brokerage firms to revise their ratings and price targets for the stock. The stock opened nearly 4% lower and fell as much as 4.27% to ₹461.95 apiece on the BSE during early trade. At 12:30 PM, Dabur share price was trading 2.54% lower at ₹469.70.

Q4 Performance Snapshot

For the quarter ended March 2025, Dabur reported a consolidated net profit of ₹320.13 crore, an 8.4% fall compared to ₹349.53 crore in the same period last year. Revenue from operations saw minimal growth, increasing by just 0.5% year-on-year to ₹2,830 crore from ₹2,814.6 crore.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) declined by 8.5% (8.6% according to one source) to ₹426.8 crore, leading to an EBITDA margin compression to 15.1% from 16.6% YoY. Domestic volume contracted by 3%, although this was slightly better than the estimated decline of 4-6%.

Segment-wise, the performance was mixed. While the food portfolio registered a 14% YoY growth, the Home & Personal Care (HPC) segment saw negative growth, falling 3% (3.3% YoY according to one source). The healthcare segment declined 5%, reportedly impacted by a delayed and short winter season. The beverages portfolio remained weak, with a 9% drop due to a soft season. The overall India business declined by 3.7% YoY. International business, however, showed resilience, growing 19% in constant currency, translating to 13% growth in INR terms despite currency headwinds. The company's board also declared a final dividend of ₹5.25 per equity share for FY25.

Analyst Reactions and Outlook

Dabur’s Q4 results triggered a string of downgrades and reduced price targets from analysts, reflecting concerns over its subdued performance. The company is seen to be under pressure, grappling with weak revenue growth and declining profitability. The stock’s valuation multiples have been trimmed, with expectations of continued de-rating in the absence of near-term growth drivers. Margins have fallen to decade-lows, while domestic revenue contracted by 4%, weighed down by sluggish urban demand and inflationary headwinds. Earnings estimates for FY26 and FY27 have been revised downward, citing underperformance in key segments such as healthcare and home and personal care (HPC), alongside muted demand for beverages. 

Company Vision and Market Performance

Looking ahead, the company expects a gradual sequential recovery and aims for margins to expand during FY26. Management, in consultation with McKinsey, has refreshed the company's vision, focusing on seven structural initiatives with an aspiration to achieve double-digit revenue CAGR over FY25-28E.

Currently trading at 37 times its estimated earnings for FY27, Dabur India shares have seen muted performance in the recent past. The stock has gained 3% in one month but has declined 10% in three months. In 2025 so far, Dabur shares have fallen 7%, and the stock has dropped 15% over the past year. 

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here