Dabur India Faces Flat Q4 Revenue and Margin Pressure Amid FMCG Slowdown
Dabur India's Q4 FY25 update reveals flat consolidated revenue growth and EBITDA margin contraction of 150-175 basis points year-on-year. Rural business outperforms urban, while international markets show strong growth. The company's shares fell over 7% following the announcement. Dabur also received an income tax order, details of which were not disclosed in the LODR filing.

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Dabur India , a leading FMCG player, has released its quarterly business update for Q4 FY25, revealing challenges in the fast-moving consumer goods (FMCG) sector. The company anticipates flat consolidated revenue growth and margin pressure, reflecting the current market dynamics.
Revenue and Margin Outlook
Dabur India expects its consolidated revenue for Q4 FY25 to remain flat, primarily due to subdued FMCG volume trends. The company has also forecasted a significant contraction in its EBITDA margins, projecting a year-on-year decline of 150-175 basis points for the quarter.
Market Performance
Despite the overall slowdown, Dabur's rural business has shown resilience, outperforming its urban counterparts. This trend suggests a divergence in consumption patterns between rural and urban markets, which could be a critical factor for FMCG companies moving forward.
International Business
On a positive note, Dabur's international markets have demonstrated strong growth. This performance in overseas territories could potentially offset some of the challenges faced in the domestic market.
Stock Market Reaction
The market responded negatively to Dabur's quarterly update, with the company's shares falling over 7.00% following the announcement. This sharp decline reflects investor concerns about the company's near-term growth prospects and profitability.
Income Tax Order
In a separate development, Dabur India received an order from the Office of the Assistant Commissioner of Income Tax, circle 7(1), Delhi, on March 31, 2025. The company has assured stakeholders that there is no change in the information provided in their initial disclosure dated April 1, 2025. While the specifics of the order were not detailed in the LODR filing, it adds another layer of consideration for investors and analysts evaluating the company's financial position.
Outlook
As Dabur India navigates through these challenging market conditions, investors and industry observers will be keenly watching for the company's strategies to stimulate growth and protect margins. The detailed financial results and earnings presentation, expected to be released after board approval, will provide more comprehensive insights into Dabur's performance and future outlook.
The current scenario underscores the broader challenges facing the FMCG sector, including:
- Evolving consumer behaviors
- Rural-urban consumption disparities
- Importance of international markets in driving growth for Indian FMCG majors
Investors and analysts will be closely monitoring how Dabur and other FMCG companies adapt to these market conditions in the coming quarters.
Historical Stock Returns for Dabur
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-0.43% | +3.90% | -3.12% | -16.29% | -4.87% | -2.20% |