HUL Q1 FY27 profit dips as prior-year tax credit boosts comparison

Mumbai: Hindustan Unilever Ltd (HUL) on Monday reported a 2% year-on-year decline in its consolidated net profit to ₹2,680 crore for the quarter ended 30 June 2026, primarily due to a one-off tax credit in the year-ago quarter. The company’s total consolidated sales for the quarter grew 10% to ₹17,184 crore, according to its BSE filing.Financial PerformanceConsolidated profit before tax for the quarter stood at ₹3,632 crore, compared to ₹3,267 crore in the corresponding period last year. Consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) grew 8% to ₹3,947 crore. The EBITDA margin was 23.0%, a 40 bps decline year-on-year.FMCG Index Rises Over 2.5%, HUL Share Jumps 5% As Price Hikes And Q4 Expectations Lift Stocks Segmental RevenueConsolidated segment revenue from continuing operations reached ₹17,341 crore, up from ₹15,757 crore in the prior year's quarter. Home care revenue contributed ₹6,554 crore, beauty and wellbeing ₹4,083 crore, personal care ₹2,624 crore, and foods ₹3,480 crore.Exceptional ItemsExceptional items in the current quarter included restructuring expenses of ₹115 crore, a profit from disposal of surplus assets of ₹45 crore, and acquisition and disposal-related costs of ₹5 crore. The year-ago quarter had a reversal of an indemnification asset of ₹34 crore. HUL To Invest ₹2,000 Crore To Boost Manufacturing Capacity In Premium Beauty & Home Care Segments OutlookPriya Nair, CEO and Managing Director, said the company expects FY27 to perform better than FY26, driven by portfolio and channel transformation. The underlying demand environment remained stable, and HUL achieved its highest growth in 13 quarters. Nair noted that commodity volatility persists, with inflationary pressures expected to continue in the short term, and the consolidated EBITDA margin is expected to remain within the guided range.Board and Audit ReviewThe results were reviewed by the Audit Committee on 27 July 2026 and approved by the Board of Directors on 28 July 2026. The statutory auditors issued an unmodified report on the results.Disclaimer: This report is based on the company's filed financial results (standalone or consolidated, as applicable) and is intended solely for informational purposes. It does not constitute investment advice or a recommendation to buy, sell or hold any security.

Shares of FMCG major Hindustan Unilever (HUL) declined over 6% to Rs 2,034 on the NSE on Tuesday after the company’s first quarter earnings missed analyst estimates.The company reported a 3% year-on-year decline in net profit to Rs 2,673 crore for the first quarter of FY27. The company said the decline in PAT resulted from a one-off tax credit in the previous quarter.Revenue from operations, however, rose 10.2% year-on-year to Rs 17,149 crore in Q1 FY27, compared with Rs 15,552 crore reported in the corresponding quarter of the previous financial year.HUL reported an underlying sales growth (USG) of 10%, driven equally by volume and price, marking the company's highest growth in thirteen quarters.EBITDA for the quarter stood at Rs 3,947 crore, up 8% from Rs 3,640 crore in the year-ago quarter. However, the EBITDA margin declined 40 basis points to 23% from 23.4% in the same period last year, HUL said in its investor presentation.HUL Q1 segment-wise performanceHome Care: Home Care delivered 14% USG, its highest growth in three years, driven by high-single-digit UVG. Disciplined market development and consumer-centric innovations helped strengthen market leadership while maintaining volume resilience.Beauty & Wellbeing: The segment recorded 12% USG, supported by high-single-digit UVG. Hair Care posted double-digit USG, led by Premium Hair Care, including future formats, while continuing to strengthen market leadership. Skin Care and Colour Cosmetics delivered high-single-digit USG, driven by double-digit growth in Premium Skin Care.Personal Care: Personal Care reported 4% USG, led by pricing as palm oil inflation persisted for the second consecutive year. Skin Cleansing recorded mid-single-digit USG, with Premium Bars delivering competitive volume-led double-digit growth. The segment also strengthened its market leadership in Bodywash.Foods: Foods delivered 7% USG, driven by mid-single-digit UVG and continued strong performance in Lifestyle Nutrition and Coffee. Premium Tea recorded low-single-digit UVG, while Coffee delivered double-digit, volume-led growth, with RTD and Bru Gold continuing to scale up. Lifestyle Nutrition maintained its double-digit growth momentum. Boost crossed the Rs 1,000 crore annual turnover milestone, while Horlicks Superfoods and RTD continued to see encouraging traction.HUL outlookHUL expects FY27 to be better than FY26, led by portfolio and channel transformation. Commodity volatility continues to persist, with inflationary pressures expected to remain in the short term.The company expects consolidated EBITDA margin to remain around the current guided range, while its focus remains on driving competitive, volume-led revenue growth anchored to its key priorities.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)