Hindustan Unilever Reports Decline in Profit Despite Revenue Growth
Hindustan Unilever's Financial Performance Overview
Hindustan Unilever Ltd (HUL) has announced a decrease in its consolidated profit for the April to June quarter of FY27, despite achieving significant double-digit revenue growth. For the quarter ending June 30, 2026, the consolidated net profit attributable to shareholders was reported at Rs 2,673 crore, reflecting a 3% decline from Rs 2,756 crore in the same quarter last year. In contrast, the company's revenue from operations surged by 10.1% year-on-year, reaching Rs 17,341 crore, indicating strong demand across its primary product lines.
HUL attributed the year-on-year profit decline primarily to a one-time tax credit recorded in the previous year's quarter, rather than any decline in its core operations. The consolidated profit from ongoing operations was Rs 2,680 crore, compared to Rs 2,741 crore in the same quarter last year. The company emphasized that the previous year's figures were positively impacted by a one-off tax credit, making the current comparison less indicative of actual business performance. Additionally, the June 2025 quarter included Rs 27 crore from discontinued operations, which was absent in the latest quarter.
As of 12:28 PM, HUL shares were trading at Rs 2,039.50, down Rs 135.10 or 6.21% on the NSE.
Strong Underlying Sales and EBITDA Growth
HUL's total turnover, which encompasses product and service sales, rose by 10.3% to Rs 17,184 crore from Rs 15,579 crore in the same quarter last year. The company reported an underlying sales growth of 10%, driven equally by a 5% increase in volumes and a 5% rise in pricing, indicating that both consumer demand and price increases played a significant role in overall performance.
Operating profitability also saw an uptick during the quarter, with EBITDA increasing by 8.4% year-on-year to Rs 3,947 crore from Rs 3,640 crore. However, the EBITDA margin slightly contracted by 40 basis points to 23%, down from 23.4%, suggesting some margin pressure despite higher sales. Profit after tax, excluding exceptional items, rose by 9.3% to Rs 2,731 crore from Rs 2,498 crore. HUL recorded a net exceptional charge of Rs 75 crore during the quarter, which was lower than the Rs 125 crore from the previous year. This exceptional charge included restructuring costs of Rs 115 crore, partially offset by a Rs 45 crore gain from surplus asset sales.
Rising Expenses Amid Business Growth
The company's total consolidated expenses increased by 10% year-on-year to Rs 13,822 crore, up from Rs 12,565 crore. Among the major cost components, purchases of stock-in-trade saw the most significant rise, increasing by 21.3% to Rs 3,321 crore. The cost of materials consumed also rose by 3.1% to Rs 5,429 crore. Advertising and promotional expenditures grew at a more moderate pace, increasing by 3.7% to Rs 1,657 crore as the company continued to invest in brand visibility. Profit before exceptional items and tax, after accounting for results from investee companies, increased by 9.3% to Rs 3,707 crore.
The home care segment emerged as the top performer during the quarter, with revenue rising by 13.4% to Rs 6,554 crore, supported by a 14% underlying sales growth and high-single-digit volume growth. HUL noted that both fabric wash and household care categories experienced double-digit underlying sales growth. The beauty and wellbeing segment also performed well, with revenue increasing by 12.4% to Rs 4,083 crore, driven by high-single-digit volume growth and sustained demand for premium skincare and haircare products. Personal care revenue grew by 3.3% to Rs 2,624 crore, with a 4% underlying sales increase primarily driven by pricing, although underlying volumes saw a slight decline. Meanwhile, the foods segment reported revenue of Rs 3,480 crore, marking a 6.8% increase from the previous year, with underlying sales up by 7%, supported by mid-single-digit volume growth.