Dabur India gets ITAT relief as tax demand drops from ₹110 crore to ₹51 crore

Homegrown FMCG firm Dabur India Ltd on Wednesday (November 19) said the Income Tax Appellate Tribunal (ITAT) has quashed ₹59.37 crore out of the earlier tax demand of ₹110.33 crore issued under the Income Tax Act, 1961.

With the ITAT's decision, the tax demand now stands reduced to ₹50.96 crore. Dabur has already filed an appeal on this amount before the Commissioner of Income Tax (Appeals).

The company reiterated that the financial implications in the matter remain unlikely, and any impact will be limited to the final tax liability determined by higher appellate authorities. The ITAT order was received on November 18, 2025, at 03:36 p.m.

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Dabur noted that this update follows its previous disclosure dated April 01, 2025, and subsequent quarterly integrated governance filings. The earlier demand had been raised by the Assistant Commissioner of Income Tax, Circle 7(1), Delhi.

Last month, Dabur India said it expects mid- to high-single-digit revenue growth in the second half, supported by low- to mid-single-digit volume gains.

Mohit Malhotra, CEO, Dabur India, said, "The first half got impacted because of the GST and the inclement weather that we face, and the beverage business got impacted because of that. But second-half projection remains what it was, there could be a little upside to it due to the GST reforms, which have come in. We expect overall, mid-single digit, kind of a growth for the full year going forward."

Also Read: Dabur India Q2 Result: Profit up 6.5% YoY but misses estimates; margins steady

"GST was a big disruption, although in the long term, it will really benefit the business,” he said, noting that temporary inventory adjustments by distributors and wholesalers led to a softer quarter. He added that these effects should fade in the coming weeks as markets stabilise under the new tax regime.

Shares of Dabur India Ltd ended at ₹518.50, down by ₹1.50, or 0.29%, on the BSE.