Hindustan Unilever Ltd (HUL) reported a decline in its consolidated profit for the April-June quarter of FY27, even as the FMCG giant posted robust double-digit growth in revenue and underlying sales. For the quarter ended June 30, 2026, consolidated net profit attributable to owners stood at Rs 2,673 crore, down 3 per cent from Rs 2,756 crore reported in the same period a year ago. Meanwhile, revenue from operations climbed 10.1 per cent year-on-year to Rs 17,341 crore, reflecting healthy demand across key product categories.
The company said the year-on-year dip in earnings was largely influenced by a one-time tax credit recorded in the corresponding quarter last year, rather than any deterioration in its core business.
The company’s consolidated profit from continuing operations came in at Rs 2,680 crore, compared with Rs 2,741 crore in the year-ago quarter. HUL noted that the previous year’s figure had benefited from a one-off tax credit, making the comparison less reflective of underlying business performance. Additionally, the June 2025 quarter included Rs 27 crore in profit from discontinued operations, whereas no such contribution was recorded in the latest quarter.
At around 12:28 pm, HUL shares were trading at Rs 2,039.50, down Rs 135.10 or 6.21 per cent on NSE.
Underlying Sales And EBITDA Show Healthy Momentum
HUL’s turnover, which includes sales of products and services, increased 10.3 per cent to Rs 17,184 crore from Rs 15,579 crore in the corresponding quarter last year.
The company reported underlying sales growth of 10 per cent, evenly driven by a 5 per cent increase in volumes and a 5 per cent rise in pricing. This indicates that both consumer demand and price-led growth contributed equally to overall performance.
Operating profitability also improved during the quarter. EBITDA rose 8.4 per cent year-on-year to Rs 3,947 crore from Rs 3,640 crore. However, the EBITDA margin narrowed slightly by 40 basis points to 23 per cent from 23.4 per cent, indicating some pressure on margins despite higher sales.
Profit after tax before exceptional items rose 9.3 per cent to Rs 2,731 crore from Rs 2,498 crore. HUL reported a net exceptional charge of Rs 75 crore during the quarter, lower than the Rs 125 crore recorded a year ago. The latest exceptional item comprised restructuring expenses of Rs 115 crore, partially offset by a Rs 45 crore gain from the disposal of surplus assets.
Expenses Rise Alongside Business Expansion
The company’s total consolidated expenses increased 10 per cent year-on-year to Rs 13,822 crore from Rs 12,565 crore.
Among major cost components, purchases of stock-in-trade registered the sharpest increase, rising 21.3 per cent to Rs 3,321 crore. The cost of materials consumed also moved higher, increasing 3.1 per cent to Rs 5,429 crore.
Advertising and promotional spending grew at a relatively moderate pace, rising 3.7 per cent to Rs 1,657 crore as the company continued investing in brand visibility. Profit before exceptional items and tax, after accounting for the share of results from investee companies, increased 9.3 per cent to Rs 3,707 crore.
The home care business emerged as the strongest-performing segment during the quarter. Revenue from the division rose 13.4 per cent to Rs 6,554 crore, supported by 14 per cent underlying sales growth and high-single-digit volume growth. HUL said both fabric wash and household care categories recorded double-digit underlying sales growth.
The beauty and wellbeing segment also delivered a strong performance, with revenue rising 12.4 per cent to Rs 4,083 crore. Underlying sales expanded 12 per cent, aided by high-single-digit volume growth and sustained momentum in premium skincare and haircare products.
Personal care revenue increased 3.3 per cent to Rs 2,624 crore. The segment posted 4 per cent underlying sales growth, driven primarily by pricing, while underlying volumes declined in the low single digits.
Meanwhile, the foods business reported revenue of Rs 3,480 crore, up 6.8 per cent from the previous year. Underlying sales in the segment increased 7 per cent, supported by mid-single-digit volume growth.
