HUL Q1 result: Profit slips 3% even as sales clock fastest growth in over three years

Fast-moving consumer goods (FMCG) major Hindustan Unilever Ltd (HUL) on Tuesday reported a 3.17% year-on-year decline in consolidated net profit to ₹2,680 crore for the quarter ended June 2026, even as it recorded its highest underlying sales growth (USG) in in over three years, driven by an equal contribution from volume and pricing. 

The company had posted a consolidated net profit of ₹2,768 crore in the corresponding quarter of the previous financial year. 

Revenue from the sale of products increased 10.26% to ₹17,149 crore in the June quarter of FY27 from ₹15,552 crore a year earlier. Total income, including other income, rose 9.84% year-on-year to ₹17,529 crore. 

HUL's earnings before interest, tax, depreciation and amortisation (EBITDA) rose 8% year-on-year to ₹3,947 crore, while the EBITDA margin remained at 23%, staying within the company's guided range despite a volatile operating environment. Total expenses during the quarter increased 10% to ₹13,822 crore. 

Home Care leads growth 

Among business segments, Home Care emerged as the strongest performer, posting 14% USG, its highest growth in three years, led by high-single-digit underlying volume growth (UVG). 

The company said Fabric Wash delivered double-digit USG, driven by strong performance in bars, powders and liquid detergents. Household Care also registered double-digit growth, while Vim Liquids continued to expand through increased household penetration. 

Beauty & Wellbeing posts double-digit growth 

The Beauty & Wellbeing segment reported 12% USG, supported by high-single-digit volume growth. Hair Care delivered double-digit growth, led by premium products and emerging formats, while Premium Skin Care continued its double-digit momentum. HUL-owned skincare brand Minimalist also posted double-digit growth with sequential improvement. 

During the quarter, the company expanded its portfolio by launching a sugar-free variant of Liquid I.V. and introducing Vaseline Gluta Hya Smoothening Body Lotion. 

Personal Care impacted by palm oil inflation 

The Personal Care business reported 4% USG, largely driven by pricing as elevated palm oil prices continued to weigh on the category for a second consecutive year. 

Premium soap bars recorded competitive double-digit, volume-led growth, while the Bodywash portfolio maintained its double-digit growth trajectory and strengthened market leadership. Oral Care posted mid-single-digit growth, supported by premium innovations across Closeup and Pepsodent. 

Foods business maintains momentum 

The Foods segment delivered 7% USG, driven by mid-single-digit volume growth. Coffee recorded double-digit, volume-led growth, while Lifestyle Nutrition continued its strong momentum. HUL said Boost crossed the ₹1,000-crore annual turnover milestone, while Horlicks Superfoods and ready-to-drink products also witnessed healthy traction. 

The Packaged Foods business posted high-single-digit growth, supported by Unilever Food Solutions, mayonnaise and international sauces. During the quarter, HUL relaunched Bru Southern Trails Coffee and expanded its Red Label Instant Tea and Kissan Chutney portfolios with new variants. 

Demand environment remains stable 

HUL CEO and Managing Director Priya Nair said the Indian economy remained resilient despite geopolitical uncertainties, aided by supportive fiscal and monetary policies. "The underlying demand environment remained stable during the quarter. Against this backdrop, HUL delivered turnover of ₹17,184 crore and 10% USG, driven equally by volume and price. This marks our highest growth in thirteen quarters," she said. 

Nair said the company's performance reflected the strength of its brands, a more competitive portfolio and disciplined execution of its strategic priorities. "As our investments in market development, channel expansion and portfolio transformation continue to scale, we are building a stronger, future-fit business. While we continue to navigate the short-term dynamic environment, we remain focused on driving volume-led revenue growth," she added. 

Following the earnings announcement, at 12.20 pm, HUL shares were trading 5.9% down at ₹2,044.45 apiece on the BSE.