HUL Q1 results: net profit slides 2% on tax expenses, revenue up 10%

Hindustan Unilever (HUL) on Tuesday reported a 2% year-on-year decline in consolidated net profit. ₹2,680 crore for the April-June quarter (Q1FY27) was impacted by one-time tax credit in the previous year period. Income from product sales is ₹17,341 crore, up 10% ₹15,757 crore in the same quarter last year.

Profit after tax, excluding exceptional items, increased by 9% year on year ₹2,731 crore. Tax expenses nearly doubled this quarter ₹939 crore onwards ₹485 crore a year ago. Exceptional items for the first quarter of 2020 were as follows: ₹115 crore due to restructuring costs ₹90 crore in Q26.

India’s largest FMCG company reported a 21.3% rise in net profit in the April quarter (fourth quarter of QFY26). ₹2,994 crore and 7.6% increase in revenue ₹16,351 crore.

EBITDA margin stood at 23% in the June quarter, remaining within the company’s expectations despite the volatile operating environment. The personal care segment recorded underlying sales growth (USG) of 4%, driven by pricing actions taken to offset palm oil inflation for the second consecutive year.

“Despite global geopolitical volatility, the Indian economy has demonstrated resilience, supported by proactive fiscal and monetary policy measures,” said CEO and Managing Director Priya Nair. HUL. “The underlying demand environment remained stable throughout the quarter. This marks our highest growth in the last 13 quarters,” he added.

The company’s shares fell 3.85 percent NSE After the results were announced on Tuesday morning.

Segment performance

Home care recorded 14% underlying sales growth (USG), supported by high single-digit underlying volume growth (UVG). HUL attributed its highest growth in three years to disciplined market development and product innovation that helped consolidate market leadership without compromising on volume. Beauty and wellness recorded 12% USG, driven by high single-digit UVG.

The macroeconomic environment did not make things easier for the company. India’s consumer price index (CPIInflation, a widely used measure of inflation, rose to 4.38% in June, driven by higher food prices and energy costs. This marked an increase from 3.93% in May and exceeded the Reserve Bank of India’s medium-term target of 4%.

This quarter was equally challenging from an operational perspective; Crude oil prices were volatile due to the ongoing US-Iran conflict.