HUL gets ₹1,986 cr tax notice for FY21; says 'no material impact on financials'

FMCG major has received a tax notice worth ₹1,986.25 crore for the financial year 2020-21 from the tax authority, on October 20, 2025. "Tax authorities have made transfer pricing adjustments in the nature of disallowance of payments to related parties or challenged the valuation of such related party payments and corporate tax disallowances in the nature of depreciation claimed," HUL said in an exchange statement.

The Indian arm of UK-based Unilever, however, said there is no material impact on financials, no impact on operations or other activities of the company due to the order. It said the company will file the necessary appeal with the appellate authority in this regard within the permissible timeline.

Shares of Hindustan Unilever closed 0.12% down at Rs 2,466.65 on the BSE on Friday.

The FMCG behemoth's consolidated net profit rose 4% year-on-year for the July-September quarter (Q2 FY26) to ₹2,694 crore, while its revenue grew 2% to ₹16,061 crore. One-off gains aided its net profit during the quarter as the company recorded a net positive impact of ₹184 crore, driven by one-off positive impact pursuant to the resolution of prior years’ tax matters between UK and Indian tax authorities. If excluded, the PAT dipped 4% YoY.

HUL’s EBITDA margin stood at 23.2% which was lower by 90 bps year-on-year amid higher investments in the business. The HUL Board also declared an interim dividend of ₹19 per share for the year ending March 31, 2026. In its outlook, the HUL CEO says, the company is determined to accelerate its portfolio transformation by “radically” sharpening consumer segmentation. “We believe these key priorities, coupled with a supportive macroeconomic environment, will position us to accelerate volume-led growth in the mid-to-long term.”