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Hindustan Unilever gains after Q1 PAT rises 6% YoY to Rs 2,768 cr

31-Jul-25 12:14 Hrs IST

Profit before tax (PBT) fell 6.4% YoY to Rs 3,303 crore in the quarter ended 30th June 2025.

EBITDA dropped 0.69% to Rs 3,718 crore in Q1 FY26, compared with Rs 3,744 crore recorded in Q1 FY25. EBITDA margin fell 130 bps to 22.8% in Q1 FY26 as against 24.1% in Q1 FY25.

Profit after tax before exceptional items (PAT bei) declined by 5% YoY to Rs 2,526 crore while profit after tax (PAT) grew by 6%. The difference is on account of a one-off impact of re-estimation of tax provisions with respect to the potential disallowance of certain expenses pertaining to prior years.

The company reported a consolidated underlying sales growth (USG) of 5% and an underlying volume growth (UVG) of 4%.

Revenue from Home Care division stood at Rs 5,777 crore, up 1.83% YoY in Q1 FY26, delivering 4% USG driven by high-single digit UVG. The segment witnessed negative pricing as it maintained competitive price-value equation and continued to pass on commodity price benefits to consumers. Fabric Wash grew volumes in mid-single digit led by Surf Excel. Household care delivered double-digit UVG driven by dishwash. Liquids portfolio in Home Care continued its double-digit growth momentum.

The Beauty & Wellbeing business reported a 10.67% jump in revenue to Rs 3,631 crore. The said business delivered 7% USG with a low-single digit UVG. Hair Care delivered mid-single digit growth led by strong performance in Future Core and Market Makers portfolio. Skin Care and Colour Cosmetics grew in low-single digit in the quarter driven by outperformance in Ponds, Vaseline and Simple.

The Personal Care segment registered a 6% YoY increase in revenue to Rs 2,540 crore, driven by calibrated pricing actions taken due to commodity inflation. Skin cleansing grew in mid-single digit led by double-digit growth in premium bars. Bodywash sustained its competitive, double-digit growth. Oral Care witnessed mid-single digit growth led by Closeup.

Revenue from Foods business increased 4.31% YoY to Rs 4,016 crore. It delivered 5% USG with a mid-single digit UVG. Beverages (Tea and Coffee) grew in double-digit. Tea delivered high-single digit growth driven by price and volume. Coffee continued its strong double-digit growth trajectory, led by price.

In the near term, the company expects growth in H1 FY26 compared with H2 FY25, led by continued portfolio transmission and improving macro conditions. If commodities prices remain stable, price growth is likely to remain in the low-single digit range. Gross margins are expected to improve sequentially, supporting further investments. Consolidated EBITDA is projected to remain within the 22-23% range.

Rohit Jawa, CEO and managing director, commented, 'FMCG demand has continued to remain stable, with a gradual uptick in recency. Encouraged by favourable macro-economic indicators, we strategically stepped up our investments to effectively advance our portfolio transformation agenda in this quarter. As a result, we delivered competitive, broad-based growth with an Underlying Sales Growth of 5%, driven by an Underlying Volume Growth of 4%, at a consolidated level.

Going forward, I expect this gradual recovery to be sustained. I am confident that the ASPIRE strategy will further strengthen our presence in segments and channels of the future, powered by unmissably superior brands, heightened innovation intensity and digital media models, to deliver competitive volume-led growth and create long-term shareholder value.'

Hindustan Unilever (HUL) is in the FMCG business, comprising primarily of home care, beauty & personal care, and foods & refreshment segments. The company has manufacturing facilities across the country and sells primarily in India.