Dabur India Shares Decline as Volume Growth Remains Muted in Q4
Dabur India shares fell by over 2% in early trade following the company’s Q4FY24 earnings release, which revealed subdued volume growth and weaker-than-expected topline performance. The FMCG major reported a modest 1.6% year-on-year revenue growth, reaching ₹2,814.6 crore, falling short of market expectations of ₹2,978 crore.
While consolidated net profit for the quarter rose 16.5% year-on-year to ₹341 crore—meeting analyst estimates—the slow pace of volume growth raised concerns across the industry. Domestic volume growth stood at 2% to 3%, significantly lower than the 5% growth posted in Q4FY23 and trailing behind peers in the staples space.
Management attributed weak volume trends to challenges in the rural market and a delayed summer season, which impacted seasonal categories such as beverages and juices. Additionally, price cuts in some portfolios to pass on input cost benefits also weighed on topline growth.
In its release, Dabur noted that while the healthcare portfolio remained steady and home care saw an uptick, the food and beverages segment suffered due to extended winters and unseasonal rains, driving a decline in demand for summer-centric products. These headwinds are reflective of broader FMCG trends where rural recovery remains uneven and weather patterns are increasingly influencing sales cycles.
Analysts expressed concerns about Dabur’s volume trajectory, especially in light of its valuation premiums relative to sector peers. Although the company made gains in market share across several categories, the lack of a broad-based rebound in rural demand continues to pose challenges for sustained volume-led growth in the near term.
Looking ahead, Dabur’s growth strategy remains focused on innovation, increased rural distribution, and expansion in under-penetrated categories. However, with competitive intensity rising and softer demand trends persisting in rural areas, the company—and the broader FMCG sector—may need to lean more heavily on new product development and strategic pricing to drive momentum.
As the FMCG landscape continues to navigate these headwinds, volume growth will remain a critical metric to watch, particularly as rural demand remains a key lever for sustainable expansion.