Hindustan Unilever shares slip after Q1 profit declines 4% YoY; revenue rises 10%

Shares of Hindustan Unilever Ltd (HUL) fell in Tuesday's trade after the FMCG major reported a 4 per cent year-on-year (YoY) decline in standalone net profit for the June 2026 quarter, even as revenue posted double-digit growth.

The stock dropped 5.08 per cent to hit a day low of Rs 2,064.30.

HUL reported a standalone net profit of Rs 2,631 crore for the quarter ended June 30, 2026, compared with Rs 2,732 crore in the corresponding quarter last year. The company said higher raw material costs and expenses, partly linked to the Middle East war, weighed on margins during the quarter.

Revenue from operations, however, rose 10 per cent YoY to Rs 16,657 crore in Q1 FY27 from Rs 15,174 crore in the year-ago period.

The company said its EBITDA margin stood at 23.0 per cent, remaining within the guided range despite a volatile operating environment. EBITDA increased 8 per cent YoY to Rs 3,947 crore.

Commenting on the quarterly performance, Priya Nair, CEO and Managing Director, said: "Despite global geopolitical volatility, the Indian economy demonstrated resilience, supported by proactive fiscal and monetary policy measures. The underlying demand environment remained stable during the quarter. Against this backdrop, HUL delivered turnover of Rs 17,184 crore and 10 per cent USG, driven equally by volume and price."

She added, "This marks our highest growth in thirteen quarters. The performance reflects the strength of our brands, increasing competitiveness of our portfolio, and disciplined execution of our 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."