Dabur Faces Revenue Decline Amid Urban Slowdown and Inflation Woes

Home-grown FMCG giant Dabur reports a projected revenue decline for Q4 FY25, impacted by urban market slowdowns and inflation-induced operating margin contraction. Despite challenges, Dabur remains focused on growth, benefiting from strong international market performance and incentives from the recent Union budget to boost consumption and recovery.

Home-grown FMCG giant Dabur has announced that its revenue is expected to decline in the March quarter of fiscal year 2025. This downturn is primarily due to a slowdown in urban markets and a contraction of 150-175 basis points in its operating profit margin, driven by inflationary pressures.

Dabur's consolidated revenue for Q4 FY25 is anticipated to be 'flattish,' according to the company's latest quarterly update filed on Wednesday. Following the announcement, Dabur shares plummeted on Thursday, hitting a 52-week low of Rs 458.25, before recovering slightly to Rs 464.55, still down 6.25% from the previous close.

International markets like MENA, Egypt, and Bangladesh are expected to show robust double-digit growth, contributing significantly to Dabur's revenue, nearly a quarter of which comes from abroad. Despite domestic challenges, more resilient rural markets and organized trade channels continue to support Dabur's objectives to drive profitable growth in the coming quarters.

(With inputs from agencies.)