Dabur plans aggressive acquisition strategy to build future-ready portfolio
Advertising and promotional spending also saw a dip, with quarterly expenses falling to Rs176.40 crore from Rs183.60 crore in the year-ago period. For the full fiscal year, Dabur spent Rs864.64 crore on advertising and publicity.
ADVERTISEMENT
Dabur India, the consumer goods giant known for its Ayurvedic and wellness products, reported an 8.3 percent drop in consolidated net profit for the fourth quarter of fiscal year 2025, as inflationary headwinds and reduced marketing expenditures weighed on performance.
The company posted a consolidated net profit of Rs312.73 crore for the three months ended March 31, down from Rs341.22 crore in the same period a year earlier. On a full-year basis, net profit fell 4 percent year-over-year to Rs1,740.42 crore.
Advertising and promotional spending also saw a dip, with quarterly expenses falling to Rs176.40 crore from Rs183.60 crore in the year-ago period. For the full fiscal year, Dabur spent Rs864.64 crore on advertising and publicity.
Despite the profit contraction, total consolidated income rose in the March quarter, reaching Rs2,971.29 crore. The consumer care business accounted for Rs2,254.98 crore of that total, while the food and retail segments contributed Rs50.48 crore and Rs24.56 crore, respectively.
On a standalone basis, Dabur reported a quarterly profit of Rs250.54 crore, a decline of 11.5 percent from the previous year. Standalone advertising expenditures stood at Rs131.09 crore during the same period.
The company cited persistent food inflation and a broader rise in the cost of living as key challenges during the quarter. Nevertheless, Dabur said it achieved 2.1 percent revenue growth in constant currency terms, with quarterly revenue reaching Rs2,830 crore. Full-year revenue rose modestly to Rs12,563 crore, up from Rs12,404 crore the previous year.
“Despite the pressures on our India business, our international operations delivered strong growth, enabling us to navigate a complex external environment,” said Mohit Malhotra, Chief Executive Officer, in a post-earnings statement. He noted that Dabur's international business recorded a 19 percent constant currency growth in the fourth quarter and 17 percent for the full year.
Looking ahead, Malhotra expressed optimism that consumer demand in both urban and rural India would gradually recover. “We are focusing on strengthening our competitive edge by scaling our rural footprint and launching consumer-centric innovations,” he said.
Dabur also revealed plans to pursue an aggressive mergers and acquisitions strategy, aiming to bolster revenue and future-proof its portfolio. The company intends to target high-growth categories such as healthcare, wellness, and food through strategic acquisitions, while relying on organic initiatives to advance its personal care offerings.
“We are actively evaluating acquisitions that are revenue accretive and aligned with the evolving preferences of younger consumers,” Malhotra told analysts during a post-earnings call. “In categories where we don’t currently operate, M&A will be our route to expansion.”
The company’s premiumization strategy aims to tap into the spending power of urban consumers while reinforcing the relevance of its legacy brands through modernization and innovation.
