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Shares of Dabur India fell nearly 3% on Tuesday after the Food Safety and Standards Authority of India (FSSAI) barred the FMCG major from selling certain food products carrying misleading “100%” 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.

In addition, Dabur’s Homemade Coconut Milk was marketed with the claim “100% Purity”, which is not permitted for compound foods. FSSAI said that despite an earlier notice directing the company to discontinue misleading “100%” claims, it failed to take satisfactory corrective action.
The regulator has directed Dabur India to immediately stop selling the products identified in the notice, along with any other food products carrying misleading “100%” claims. The company has also been asked to submit an Action Taken Report (ATR) within 15 days.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)

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