Dabur India’s share price fell 4.3% to an intra-day low of Rs 461.10. This is after the company reported an 8.4% year-on-year decline in net profit for Q4FY25, at Rs 320.13 crore. This indicated that urban demand is still tepid, particularly in general trade channels, which continued to weigh on Dabur’s performance.
Nuvama on Dabur India: Trims target price
The international brokerage house Nuvama Institutional Equities trimmed the target price to Rs 615 from Rs 635, while maintaining its ‘Buy’ call on the stock. Given the sluggish urban demand and consecutive underperformance by the home and personal care category due to a higher base effect. Dabur’s healthcare was impacted by a delayed winter, and the beverages segment was hit by a weak season. Dabur’s Q4FY25 revenue remained flat YoY while EBITDA decreased 8.6% YoY. Nuvama cut FY26 earnings per share estimates by 4.8% and FY27 by 3%.
Motilal Oswal on Dabur India: Upcoming season critical
Dabur’s quarterly performance was weak but largely in line with Motilal Oswal’s estimates. Dabur took a 3.5% price hike to offset inflation, but it was neutralised by trade schemes and promotions. Dabur’s growth trajectory is trending below its potential and historical delivery. Most of its initiatives are delivering limited outcomes, which are ruined by a high base, seasonality, weak consumption, and high competitive intensity.
“With most of its categories reporting a decline in revenue, the upcoming season will be critical to track. Near-term growth worries persist amid weak summer season demand and slow power brands’ performance,” said Motilal Oswal.
However, with a positive outlook on consumption for FY26, the brokerage firm expects that a gradual performance recovery for Dabur will reflect in the stock price accordingly. It has retained its ‘Buy’ rating on the stock, with a target price of Rs 575.
Dabur India’s Q4 results
The company reported an 8.4% decline in consolidated net profit to Rs 320.13 crore in Q4FY25, compared with a net profit of Rs 349.53 crore in the same period a year ago. Its revenue from operations rose 0.5% to Rs 2,830 crore in the last quarter of FY25, as against Rs 2,814.6 crore in the corresponding quarter of the last financial year. Dabur India’s home and personal care segment reported flat YoY growth, healthcare contracted 2.2% YoY, the foods category grew 18.4% YoY, and the beverages declined 8.8% YoY.