Hindustan Unilever (HINDUNILVR) Stock Gains 1.66% to ₹2,563.10 After Q1 FY26 Results; Volume Growth and New Launches Keep Momentum Intact

Mumbai, 1 August 2025: Shares of Hindustan Unilever Ltd (NSE: HINDUNILVR | BSE: 500696) climbed 1.66% to ₹2,576.00 in morning trade today after the company reported its Q1 FY26 earnings. The stock opened at ₹2,550, touched an intraday high of ₹2,727.50, and was last seen trading at ₹2,576.00 at 12:07 PM IST, buoyed by broad-based growth and stable financial performance despite margin pressure.

4% Underlying Volume Growth and 6% PAT Lift HUL Shares Amid Margin Compression

Hindustan Unilever reported an underlying volume growth (UVG) of 4% and profit after tax (PAT) growth of 6% YoY, even as EBITDA margins contracted by 130 basis points. The market responded positively to the stable growth trajectory across key verticals, with notable performance in Home Care and Health & Wellbeing, which posted high-single and double-digit growth respectively. This steady performance reassured investors despite margin headwinds and input cost concerns.

Share Price Response as of 12:07 PM IST Current Price: ₹2,563.10 (+₹41.90, +1.66%)

• Opening Price: ₹2,550.00
• Intraday High: ₹2,727.50
• Intraday Low: ₹2,549.20
• Market Capitalisation: ₹6.02 lakh crore
• P/E Ratio: 56.56
• Dividend Yield: 1.68%
• 52-Week High / Low: ₹3,035.00 / ₹2,136.00
• Quarterly Dividend Amount: ₹10.77

Segmental Growth in Home Care, OZiva and New SKUs Propel Q1 Results

The Home Care segment recorded volume-led growth, supported by new launches like Surf Excel Matic Express and Vim Pro Clean. Meanwhile, OZiva, a part of the Health & Wellbeing portfolio, reported a 3x revenue growth YoY, reinforcing the brand’s relevance in the growing nutrition and wellness category. The Foods segment also expanded its offering with innovative SKUs such as Red Label Instant Masala Chai and Boost Protein, aiding revenue traction across channels.

Management Guides Margin Recovery in FY26 with Competitive Growth Strategy

The company reaffirmed its strategy of volume-led competitive growth, backed by innovation and portfolio premiumisation. It expects EBITDA margins to remain in the 22-23% range in the coming quarters. This forward-looking guidance and continued focus on brand investments and operational efficiencies further enhanced investor confidence.

Hindustan Unilever Key Metrics Reflect Stable Fundamentals with Moderate Growth

As per preset financial metrics, HUL maintained a market capitalisation of ₹5,99,380.7 crore, positioning it as a market leader in India’s FMCG sector. Its P/E ratio (TTM) stood at 55.5, which is above the industry median, and the PEG ratio (TTM) was 12.4, signalling a premium valuation.

While operating revenue growth (TTM) and net profit growth (TTM) were below industry medians, at 2.9% and 4.5% respectively, its return on equity (ROE) remained strong at 21.6%, and return on assets (RoA) stood at 13.3%, both above the industry median. The operating profit margin (OPM) for the quarter was 22.5%, and the OPM (TTM) was 23.2%. With a Piotroski Score of 6, HUL’s financials are considered average but consistent. Institutional holdings increased slightly to 26.24%, indicating moderate institutional interest.

Relative returns versus Nifty50 for the quarter stood at 7.1%, while sector relative returns were 3.6%. Revenue growth for the quarter YoY was 5.1%, which is above the industry median, showing resilience despite macro challenges.

About Hindustan Unilever Ltd – India’s Largest FMCG Company with a Diverse Portfolio and Market Leadership

Incorporated in 1933 and listed on Indian bourses since 6 July 1995, Hindustan Unilever Ltd is a subsidiary of Unilever PLC, and a constituent of the NIFTY 50 index. It operates across Home Care, Beauty & Wellbeing, Personal Care, and Foods, commanding leading market positions in multiple consumer product categories.

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