HUL Profit Falls 3% in Q1; Shares Slump 3.16% in Early Session

Mumbai, July 28: Hindustan Unilever (HUL) shares fell sharply on Tuesday, down 3.16 per cent in morning session, after India’s consumer goods giant posted 3 per cent year-on-year dip in consolidated profit for the June quarter, even as net sales jumped in double digits.

The stock started the day trading flat at Rs 2,174.60, at par with its previous close, and moved up gradually during the early part of the session to reach an intra-day high of Rs 2,213.00 around 10:00 am. Just after, post the publication of HUL’s Q1 FY27 result on exchanges, it came crashing down to an intra-day low of Rs 2,062.70. At last update, HINDUNILVR was trading at Rs 2,105.80 down Rs 68.80 or 3.16 per cent, shortly after it changed hands at Rs 2,106.50, down Rs 68.10 or 3.13 per cent. The volume weighted average price for the day was Rs 2,107.11.  

From hitting a fresh high in mere minutes into trading, it nose-dived equally quickly on markets reacting to the results announcement. Stock prices gave up all their morning gains to plunge deep into the negative territory just minutes after the results announcement.  

By last check, orders on the exchange for HINDUNILVR were favouring the buyers, with 53 per cent of the total outstanding orders or 1,77,647 shares on the bid, compared with 47 per cent or 1,57,518 shares on the offer side, moments after displaying a similar pattern of 51.65 per cent or 1,70,988 shares on the buy-side against 48.35 per cent or 1,60,036 shares on sell-side.  

HUL Shares Trend: Last Week  

Zooming out to view the stock’s performance over the last week, it is seen that after starting at around Rs 2,140 levels early last week, the stock continued moving up to hit a weekly high close to Rs 2,160 on Tuesday and Wednesday, before dropping to around Rs 2,140 on Thursday. It then moved up sharply on Friday to end Monday’s session at Rs 2,174.60. With Tuesday’s post-results fall, HUL has given up the entire gain it made during the week.  

HUL Q1FY27 Profit Falls 3% to Rs 2,673 Crore  

Consumer goods major Hindustan Unilever (HUL) Tuesday (July 28) reported a 3 per cent year-on-year decrease in consolidated profit to Rs 2,673 crore in the April-June quarter of FY27. Profit of the company stood at Rs 2,756 crore in the same quarter last fiscal. On a sequential basis, the company’s profit reduced 10.7 per cent from Rs 2,992 crore in fourth quarter (Q4) of FY26.  

Net sales from the operation of products rose 10.3 per cent year-on-year and 6 per cent sequentially to Rs 17,149 crore. Net sales from product operations was Rs 15,552 crore in Q1 FY26 and Rs 16,172 crore in Q4 FY26.  

In a communique to exchanges, the company said total turnover was Rs 17,184 crore for the quarter. Underlying sales growth (USG) was 10 per cent for the quarter, the highest in 13 quarters. USG was led equally by volume and price. Underlying volume growth (UVG) was 5 per cent for the quarter.  

EBITDA for the quarter was Rs 3,947 crore, an increase of 8 per cent year-on-year. EBITDA margin was 23.0 per cent for the quarter, down 40 basis points (bps) compared to the year ago quarter but within the guided range. Profit after tax before exceptional items increased 9 per cent year-on-year to Rs 2,731 crore for the quarter. Reported profit after tax was impacted by a one-off tax credit in the year ago quarter and declined on a headline basis.  

Consolidated Revenue-wise Performance  

Home Care grew fastest in three years with Rs 6,554 crore revenue at 17 per cent margin driven by USG of 14 per cent. Beauty & Wellbeing delivered revenue of Rs 4,083 crore at 28 per cent margin with USG of 12 per cent led by double-digit growth in premium hair and skin care. Personal Care generated revenue of Rs 2,624 crore at 20 per cent margin with USG of 4 per cent, as palm oil inflation continued to impact the category. Foods delivered revenue of Rs 3,480 crore at 20 per cent margin with USG of 7 per cent led by coffee and lifestyle nutrition.  

“The Indian economy showed signs of resilience despite continuing global geopolitical volatility and was supported by proactive fiscal and monetary policy initiatives. Our turnover of Rs 17,184 crore and 10 per cent USG for the quarter is the best in thirteen quarters, and reflects the strength of our brands and our ability to execute on our strategic priorities with discipline,” said Chief Executive Officer and Managing Director Priya Nair.  

“We expect commodity volatility and inflationary pressures to continue in the near-term. Consolidated EBITDA margin is likely to remain around the current guided range. Despite the near-term challenges, we expect FY27 to be stronger than FY26, as we benefit from the momentum in portfolio and channel transformation,” she added.  

Source: 

• https://www.nseindia.com/get-quote/equity/HINDUNILVR/Hindustan-Unilever-Limited