HUL Q4 results: Profit falls 3.7% to ₹2,464 crore amid margin squeeze

FMCG major says it strengthened market leadership as sales slowed down

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Hindustan Unilever (HUL), India’s largest fast-moving consumer goods (FMCG) company, reported a subdued fourth-quarter performance on Thursday on the back of margin stress and moderation in urban demand. 

  The Indian unit of UK’s Unilever, which owns brands such as Pears bath soap and Surf Excel detergent, posted a 3.7 per cent year-on-year (Y-o-Y) decline in consolidated net profit (attributable to the owners of the company) at ₹2,464 crore for Q4FY25. The underlying volume growth stood at 2 per cent for the quarter under review. 

 

The FMCG major’s revenue rose by 3 per cent Y-o-Y at ₹15,670 crore.

 

Bloomberg analysts estimated revenue at ₹15,491.5 crore and net profit at ₹2,488.2 crore.

 

“Our outlook for the next financial year is optimistic, with demand conditions expected to improve gradually,” said Rohit Jawa, chief executive officer and managing director, HUL.

 

The company’s Pbidt (profit before interest, depreciation, and tax) was down 1.4 per cent in Q4FY25 at ₹3,789 crore. Its Pbidt margins stood at 24 per cent compared to 25 per cent in the corresponding quarter last year. 

 

Sequentially, the company’s revenue was down 0.9 per cent, and its net profit down 17.4 per cent.

 

“While we keep a close watch on the pace of recovery and the broader economic outlook in the short term, we remain confident of the medium-to-long-term opportunity in the Indian FMCG sector and HUL’s ability to grow competitively,” Jawa said.

 

The consumer major expects the first half of FY26 to be better than the second half of FY25 and further moderation in gross margin due to existing commodity inflation.

 

“In the near to mid-term, we expect growth would improve as a result of our accelerated portfolio transformation and an improving macroeconomic environment,” Ritesh Tiwari, executive director, finance & IT, and chief financial officer (CFO), HUL, said at a press conference after announcing the results.

 

Going forward, Tiwari expects price growth to be in the low to single-digit range, and margins in the 22-23 per cent range.

 

“We believe this is the right time to accelerate investment as we chart the future course of growth of the company and the backdrop of portfolio transformation actions and improving macro environment,” Tiwari explained.

 

“This is a good moment for the CPG (consumer packaged goods) industry. For one, all macro triggers are turning out to be favourable, and rural markets have recovered and shown resilience in the past few quarters. We’ve had good monsoons, healthy agricultural output, and full reservoirs — all of which are positive triggers, especially given HUL’s significant rural-facing portfolio,” he elaborated.

 

Jawa acknowledged that smaller packs are growing at a faster pace as rural demand continues to grow faster than urban.

 

Nevertheless, he pointed to a confluence of macro tailwinds—declining food inflation, lower interest rates and EMIs, tax relief, and softening crude oil prices—that could buoy consumption in the near term.

 

Following the earnings announcement, HUL shares slumped over 4 per cent, closing at ₹2,325.25 on the BSE and ₹2,324 on the NSE.