Dabur India expects ‘flattish’ consolidated revenues in Q4FY25

Dabur India said rural demand continued to grow ahead of urban markets and was resilient in the March quarter.
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Dabur India said it expects consolidated revenue to be “flattish” in the March quarter, while India FMCG business is likely to post a decline in mid-single digits. This comes on the back of the overall FMCG volume trends continuing to be subdued in Q4 FY25, led by a slowdown in urban markets. It added that it expects recent incentives announced in the Budget to boost FMCG consumption.

In its quarterly earnings preview, the FMCG major said rural demand continued to grow ahead of urban markets and was resilient in the March quarter. “In terms of channels, organised trade including Modern trade, E-commerce and Quick commerce maintained their growth momentum, while General trade continued to be under pressure. Overall, FMCG volume trends continued to be subdued during the quarter,” it added.

“Due to delayed and truncated winters and a slowdown in urban markets, India FMCG business is likely to decline in mid-single digits. As a result, Dabur’s consolidated revenue is expected to be flattish during Q4 FY25,” it added.

The company also said due to the impact of inflation coupled with operating deleverage, it anticipates Q4 operating profit margin to contract by 150-175 basis points y-o-y.

The homegrown FMCG company product portfolio includes Dabur Chyawanprash, Honey, Honitus, Pudin Hara and Lal Tail, Amla, Red Paste ,Vatika, Réal, Hommade and Badshah.

Meanwhile, Dabur expects its key international markets, including the MENA region, Egypt, and Bangladesh, to post a strong performance. This, it said, will lead to robust double-digit growth in constant currency terms for the international business in the March quarter.

“In India, the foods business comprising ‘Hommade’ and ‘Badshah’ continued to perform well and is expected to post double-digit growth,” it added.

The company said it expects incentives outlined in the recent Union Budget will stimulate consumption and facilitate a recovery in the FMCG sector, which Dabur is well placed to capitalise on.

Published on April 3, 2025