Dabur Shares Drop Over 4% Even After Profit Growth in Q4—Here’s What Really Happened

Dabur India, the company behind household names like Dabur Honey, Real Juice, and Vatika, saw its stock price fall more than 4% on Tuesday—even though it reported a rise in profit for the January–March quarter (Q4) of the financial year 2024–25.

So, if the company made more money, why did the stock fall? Let’s break it down in simple, human language.

Dabur Made More Profit—But Not Everything Was Perfect

Dabur’s Q4 net profit went up by 16%, reaching ₹350 crore compared to the same quarter last year. Its total revenue also increased slightly, up 5% to around ₹2,814 crore. On top of that, the company announced a dividend of ₹2.75 per share for its shareholders.

Sounds like good news, right? So why did the market react the opposite way?

Why the Share Price Still Fell

Despite the profit growth, investors were not completely happy with the results. Here’s why:

1. Sales Growth Was Slower Than Hoped For:
Even though revenue went up, the growth wasn’t as strong as expected. In fact, for some segments, growth was flat. That made investors nervous about how fast the company can keep growing in the near future.

2. Profit Margins Under Pressure:
While profits rose, the company also warned that its operating margins might shrink next quarter. This means costs could go up faster than revenue, which might hurt future profits.

3. Urban Demand is Slowing Down:
Dabur said it’s seeing slower growth in cities, which is worrying because urban markets usually bring in more revenue. If that slowdown continues, it could affect the company’s earnings going forward.

What the Company Is Planning Next

Even with the share price drop, Dabur is staying positive about what’s ahead. The company said it expects things to improve in the coming months, thanks to:

• Government schemes to boost the economy

• A better harvest season that could put more money in rural pockets

• Focused efforts on advertising and improving how they sell their products

They also plan to become more efficient in their operations to help protect profits, even if sales don’t grow quickly.

In Simple Terms

To sum it up: Dabur made more profit, but not enough to wow the market. Investors were expecting stronger sales and better growth in key areas like cities. While the company is doing okay, some warning signs—like slower demand and margin pressure—made people cautious, which led to the stock dropping over 4%.