Shares of Hindustan Unilever Ltd, (HUL) India’s largest FMCG company, on Wednesday plunged 7% on the Bombay Stock Exchange (BSE) as the company’s quarterly results fell short of investors’ expectations, even as it saw higher revenues.
HUL’s first quarter (Q1) net profit fell 3% year-on-year (YoY) to ₹2,673 crore due to one-off tax credit gain made in the year ago period. Rising input costs and inflationary pressures remained key challenges, affecting operating margins during the quarter.
However, the company delivered it’s highest revenue growth in 13 quarters, with underlying sales growth (USG) of 10%, supported by higher sales volumes and selective price increases. USG refers to the increase in turnover for the period, excluding any change resulting from acquisitions and disposals. Revenue from sales jumped 10.26% YoY to ₹17,149 crore in the review period.
“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 ₹17,184 crore and 10% USG, driven equally by volume and price. This marks our highest growth in thirteen quarters,” said Priya Nair, CEO and Managing Director, HUL.
Highlighting that the performance reflects the strength of its brands, increasing competitiveness of portfolio, and disciplined execution of strategic priorities; she said “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,” she added.
The company’s performance reflects resilient consumer demand, particularly in rural markets, analysts said.
It’s performance was supported by growth across its key business segments, including Home Care, Beauty & Wellbeing, Personal Care, and Foods. Rural demand continued to outperform urban markets, while premium product categories maintained healthy momentum..
HUL’s home care business delivered 14% USG, marking its highest growth in three years while strengthening market leadership; beauty & wellbeing 12%, driven by high-single digit underlying volume growth or UVG (volume growth including the impact of mix of turnover realisation of products sold).; and hair care achieved double-digit USG driven by premium products including future-formats, while the category continued to strengthen market leadership.
Skin care and colour cosmetics delivered high-single digit USG, led by double-digit growth in premium products. Personal Care segment saw 4% USG, strong growth in premium bars and strengthened market leadership in bodywash products, it said, adding foods business delivered 7% USG, continued strong performance in lifestyle nutrition and coffee. Premium Tea reported low-single digit UVG.
Published - July 28, 2026 05:28 pm IST