Dabur shares drop 3% after FSSAI bars FMCG major from selling products with '100%' guarantee claims

In a post on X, the food regulator said it had issued a prohibition order after finding that products such as honey, cow ghee and edible oils were being marketed on the company's website with claims including "100% Natural", "100% Pure", "100% Purity Guaranteed", "100% Organic" and "100% Tender Coconut Water".

According to FSSAI, these claims violate the Food Safety and Standards (Advertising and Claims) Regulations, 2018, as they are ambiguous, unverifiable and likely to mislead consumers.

The regulator also found that Dabur Himalayan Organic Apple Cider Vinegar and Dabur Organic Honey displayed the Jaivik Bharat logo without a valid FSSAI organic endorsement.

Also read |FSSAI prohibits Dabur from selling food products with '100%' claims

Dabur India share price

Following the prohibition order, Dabur India shares fell nearly 3% to Rs 414.35 apiece on the NSE. The stock has declined nearly 2% over the past week and more than 6% in the last month. It is down about 17% so far in 2026.Over the longer term, Dabur India shares have delivered negative returns of 21% over the past year, 27% over three years and 29% over five years. The company currently commands a market capitalisation of more than Rs 73,700 crore.

The stock had already been under pressure after the FMCG major reported June-quarter earnings that were broadly in line with Street estimates. Last Wednesday, the company reported a 15% year-on-year (YoY) rise in consolidated net profit to Rs 591 crore for the April-June quarter of FY27, marking its third consecutive quarter of double-digit profit growth, driven by price hikes, cost control and broad-based growth across its FMCG portfolio.

Consolidated revenue rose 11% YoY to Rs 3,761 crore, while the India FMCG business grew 9.5%, supported by underlying volume growth of 5%. Operating profit also increased 11% during the quarter.

Also read |What brokerages said after Dabur's Q1 earnings?

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price