Dabur shares tank 6%, Marico hits new high

Analysts say Dabur may fare better in Q3, expect double-digit revenue growth for Marico

- DEEPAK KORGAONKAR

Dabur India's (Dabur's) share price slipped 8 per cent to ₹571.25 in intraday trade on Thursday, hitting a four-month low on the BSE, after the management said it expected consolidated revenue to decline in mid-single digits in the July to September quarter (Q2FY25).

The stock ended 6 per cent lower at ₹580.60, its lowest level since June 4, 2024. In the past two weeks, the stock has declined 14 per cent.

The personal care products company posted over 7 per cent year-on-year (Y-o-Y) growth in Q2FY24 and Q1FY25. On account of lower primary revenue and high advertisement & promotion (A&P), however, the management expects the operating margin to decline in the mid to high teens Y-o-Y in Q2FY25.

In Dabur India's Q2FY25 business update, the company said it had experienced disproportionately higher growth in modern trade (MT), e-commerce, and quick commerce in the last few quarters, which led to high inventory levels for its general trade (GT) channel and affected distributor return on investment (ROI).

This has prompted the company to make a strategic decision to correct distributor inventory at the GT level to improve its ROI. It is expected to impact the temporary decline in revenue.