Early trade on Wednesday morning shows Hindustan Unilever's share price slowly gaining despite hitting a 52-week low on Tuesday. After missing targets set by Street estimates for the June quarter, the FMCG giant’s shares had dipped by around 7 per cent. The share had previously closed at ₹2,022, down from ₹2,174.
While the company witnessed a rise of 10 per cent in overall revenue to ₹17,341 crore in Q1 FY 2026, the net profit slumped to ₹2,673 crore as compared to ₹2,756 crore in Q1 FY 2025. HUL also reported an underlying volume growth of 5 per cent, which failed to meet the Street expectation of 6 to 8 per cent.
As of 11:20 am today, the company’s share price has risen by 3.7 per cent, trading at around ₹2099. The stock gain is attributed to brokerages including Jefferies, Motilal Oswal, Goldman Sachs and Nirmal Bang maintaining a positive outlook on the company’s Q1 results. Stating that double-digit revenue and volume growth are good indicators, most brokerages have retained their “buy” ratings.
CEO and Managing Director of HUL, Priya Nair said, "The underlying demand environment remained stable during the quarter. Against this backdrop, HUL delivered a turnover of ₹17,184 crore and 10% USG, driven equally by volume and price. The performance reflects the strength of HUL brands, increasing competitiveness of its portfolio, and disciplined execution of strategic priorities.”
A stable EBITDA margin of 23 per cent and its strategy to gradually introduce premiumisation while maintaining a base affordable product line have also boosted investor confidence.
The firm has also mentioned that its profits seem lower due to a one-off tax credit from last year. One-off tax credits are a single, non-recurring reduction in tax that can inflate a quarter’s profits. However, elevated raw material costs for soap and tea products, along with disruptions caused by the West-Asia conflict, remain concerns, as they can increase operating expenses.
