Dabur Share Price Slips 3% Post Q4 Results: Profit Down, Dividend Up; Brokerages Turn Cautious; Buy or Avoid?

Domestic FMCG Giant, Dabur Shares are under pressure as the stock fell 3.3% at the opening bell in the stock market today. The firm released its Q4 results yesterday post-market hours, where the weak Q4 FY25 results were outlined in which consolidated revenue of the company rose just 0.6% year-on-year (YoY). However, EBITDA and net profit declined by 8.6% and 8.5% YoY, respectively, as inflation and weak domestic demand impacted overall performance in this quarter.

Dabur Share Price Today

Dabur shares today opened 3.3% lower. At Rs 461.10 after closing in red yesterday at Rs 480 apiece on the NSE. Dabur share price has increased by 2.33% over the past 30 days of trading. However, the domestic FMCG stock fell around 9% over the last three months. On a year-to-date basis, Dabur shares have declined nearly 8.6%.

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Share Price Target and Investment Outlook

Considering the weak performance in FY25, Centrum Institutional Research has revised Dabur share rating from 'Buy' to 'Reduce' and set a target price of Rs 473. The estimate is based on 44x FY27E EPS. While the Badshah Masala brand in Dabur's food portfolio is expected to grow at over 15% and international business to maintain double-digit growth, challenges remain in the domestic market. Centrum expects the overall FMCG market to start recovering from October to December 2025 (Q2 FY26).

Dabur India Q4 FY25 Results

In the domestic market, Dabur India's business declined in the mid-single digits. For the Jan-Mar quarter of FY25, Dabur India's net profit stood at Rs. 312.7 crore, 8.4% down from Rs. 341.2 crore in the same quarter last year (YoY basis). The company's revenue from operations saw a marginal growth of 0.5% to Rs. 2,830 crore compared to Rs. 2,814.6 crore in the same quarter last year, i.e., Q4 FY24. EBITDA was reported to be Rs. 426.8, which dropped 8.6% year-on-year.

Inflation in raw material prices severely impacted margins. Gross margin fell by 192 basis points to 46.7%, and EBITDA margin dropped to 15%, the lowest in the past eight quarters.

For the full financial year 2024-25, Dabur posted a revenue of Rs. 12,563 crore, 1.2% up from Rs. 12,404 crore in FY24. Key segments such as healthcare and beverages struggled due to a delayed winter and rising competition, while the Home and Personal Care (HPC) segment also saw a mid-single-digit fall because of a high base from last year. Despite the modest top-line growth, FMCG sector demand remained muted during FY25, particularly in rural markets, which contributed to the slowdown in earnings momentum.

Dabur India Dividend FY25

Along with the Q4 results, the Dabur board of directors declared a final dividend of ₹5.25 per share, or 525%, bringing the total dividend for FY25 to 800%. This equates to a total dividend outgo of Rs 1,417.86 crore for the financial year 2024-25.
"In line with our dividend payout policy, the Board has recommended a final dividend of Rs. 5.25 per share," said Mr P.D. Narang, Group Director, Dabur India Ltd.

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