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The Economic Times
The Economic Times
Debaroti Adhikary

Dabur India shares in focus after US FDA places drugs from Silvassa plant under import alert. Here’s why

Shares of Dabur India will remain in focus on Friday after the FMCG major said that the US FDA has issued an import alert for drugs manufactured by the company at its manufacturing plant situated in Silvassa in Dadra and Nagar Haveli.

The FDA inspected Dabur’s plant and identified certain deficiencies on account of data integrity and maintenance lapses. After the conclusion of the inspection, Dabur received inspectional observations, to which it has submitted its responses.

“Now, pursuant to observations noted by the authority, review of the company’s responses and Establishment Inspection Report (EIR), the US FDA has issued an Import Alert (IA) 66-40 on June 10, 2026, for drugs manufactured by the company at the aforesaid plant,” Dabur said.

The FMCG major highlighted that there is no impact on financial, operational or other activities of the company due to this order, which concerns only a small part of its manufacturing plant in Silvassa in relation to private label products that generate insignificant revenue for the company. Domestic products are not covered and are not impacted by this order, and the aforesaid plant continues to be operational, the company added.

“We are continuing to engage with the US FDA authority by providing corrective and preventive action plans along with proactive and strong action on the ground to fix the identified gaps. In addition, multiple internal and external independent third-party testing has shown no out-of-specification or any other concerns with any of the company’s products. We remain committed to product quality and consumer safety despite this one-off incident. We operate sites across the globe and are taking effective action to implement alternate sourcing strategies for our US customers,” Dabur further said.

Also read: US drug regulator issues import alert for drugs made at a Dabur India plant

Last month, Reuters reported, citing the FDA's inspection report, that the regulator found critical manufacturing records were falsified to conceal that equipment meant to make certain products had been used for multiple other products. A live bird and bird droppings were found in the raw material warehouse, about 30 feet from packaging materials, as per the report.

Dabur share price

Dabur India shares have fallen 11% in one month and 15% in 2026 so far. In the longer term, the shares of the company have fallen around 11% in one year, 24% in three years and 25% in five years.

The company has a market capitalisation of around Rs 75,000 crore. The stock’s P/E ratio stands at over 40.

Dabur earnings snapshot

Dabur in May reported a consolidated net profit of Rs 369 crore for the March-ended quarter versus Rs 320 crore in the year-ago period, implying a 15% uptick. The company's revenue from operations in Q4 FY26 was up 7.3% at Rs 3,038 crore versus Rs 2,830 crore posted in the corresponding quarter of the previous financial year.

The company's India FMCG business posted 9.5% growth during the quarter, according to the company filing. The operating profit rose 12.5% during the quarter, reflecting strong execution in the domestic FMCG business and healthy underlying volume growth of 6%.

Also read: Dabur Q4 Results

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

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