HUL Q1 FY26 Results: FMCG Giant Clocks Rs. 16,323 Cr Revenue, Up 5% YoY, Net Profit Rises 6%; Stock Jumps 4%

FMCG major Hindustan Unilever Limited (HUL) announced its financial results for the first quarter of FY26 reporting moderate revenue growth and a jump in profits but a decline in margins.

Revenue & Growth Highlights

HUL's turnover for the quarter stood at Rs. 16,323 crore, jumping a 5% YoY from Rs. 15,523 crore. The growth was driven by a 4% rise in underlying volumes, despite a challenging consumption environment.

Underlying sales growth also came in at 5%, with a stable performance across categories. The FMCG giant managed to sustain topline momentum, although the pace was modest compared to previous quarters.

Profitability and Margins

While revenue was up, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) came in at Rs. 3,718 crore, marginally down from Rs 3,744 crore in the same period last year. This resulted in an EBITDA margin contraction of 130 basis points, declining to 22.8% from 24.1%.

One of the main reasons behind the compression in margins and inflationary pressures in select input costs and higher brand investments. The company's ability to protect profitability despite cost pressures was partially supported by operational efficiencies.

HUL reported a net profit of Rs. 2,768 crore, with a 6% year-on-year increase from Rs. 2,612 crore in the same quarter last year. However, Profit After Tax (PAT) before exceptional items declined by 5% YoY to Rs. 2,526 crore, due to operational pressures and lower other income.

Profit Before Tax (PBT) came in at Rs. 3,303 crore, a 6% decline compared to Rs. 3,529 crore in the same quarter last year. The dip was impacted by a one-time exceptional charge of Rs. 127 crore.

The company reported a tax expense of Rs. 535 crore, significantly lower than Rs. 917 crore in the previous year. This brought down the effective tax rate to 16.2%, compared to 26% in the year-ago period.

Segmental Performance

Hindustan Unilever Limited's (HUL) Home Care segment remained the biggest contributor, delivering revenue of Rs. 5,777 crore in the June quarter. The segment reported a solid 20% margin, supported by high-single digit volume growth (UVG) and 4% underlying sales growth (USG). Within Home Care, Fabric Wash and Household Care categories delivered double-digit volume growth.

The Beauty & Wellbeing segment recorded revenue of Rs. 3,631 crore with a robust 28% margin. Underlying sales growth came in at 7%, while volume growth remained in low-single digits.

In the Personal Care segment, HUL posted revenue of Rs. 2,540 crore, clocking in a 19% margin. USG stood at 6%, but the segment witnessed a low-single digit decline in volumes. Despite this, sub-categories like Skin Cleansing and Oral Care delivered mid-single digit growth.

The Foods & Refreshment segment delivered revenue of Rs. 4,016 crore and maintained a healthy 16% margin. The segment posted 5% USG and mid-single digit UVG, with Beverages reporting strong double-digit growth led by tea and coffee products.

HUL Share Price Today

Post the announcement of its Q1 FY26 results, Hindustan Unilever Limited (HUL) shares surged nearly 3.7% and are currently trading at Rs. 2,528.40 at ten time of writing. Over the past five trading sessions, the stock has added Rs. 107.40, with a 4.44% weekly gain.HUL shares gained 10% in July alone and so far this year the stock is up 8%.