HUL shares rise 4% in weak market; here's what's driving demand

Hindustan Unilever (HUL) shares rose 4.1 per cent, logging an intra-day high at ₹2,538.4 per share on BSE, after posting Q1 results on Thursday, in market hours. 

 

At 10:30 AM, HUL share price was trading 3.3 per cent higher at ₹2,517.5 per share on BSE. In comparison, the BSE Sensex slipped 0.73 per cent to 80,888.19. The market capitalisation of the company stood at ₹5,91,697.57 crore. The 52-week high of the company stood at ₹3,034.5 per share, and the 52-week low was at ₹2,136.

HUL Q1 results details

In Q1, the fast-moving consumer goods (FMCG) giant reported a consolidated net profit of ₹2,756 crore, as against ₹2,610 crore a year ago, up 5.5 per cent. 

 

The profit after tax (PAT) included exceptional items-- restructuring expenses of ₹91 crore, as against ₹48 crore in June quarter 2024, reversal of indemnification asset on expiry of underlying income tax provision of ₹34 crore, acquisition and disposal related costs of ₹3 crore, and profit from disposal of surplus assets of ₹1 crore. 

 

The profit after tax before exceptional items for the quarter was at ₹2,526 crore, as compared to ₹2,646 crore a year ago, down 5 per cent.

 

The consolidated revenue for the quarter stood at ₹16,514 crore, as against ₹15,707 crore a year ago. The Earnings before interest, tax, depreciation, and amortisation (Ebitda) for the quarter was at ₹3,718 crore, as compared to ₹3,744 crore a year ago, and the Ebitda margin was at 22.8 per cent, declining by 130 basis points (bps) year-on-year (Y-o-Y)  in line with company's guidance, as it continued to step up investments in the business. 

 

HUL reported a consolidated Underlying Sales Growth1 (USG) of 5 per cent and an Underlying Volume Growth2 (UVG) of 4 per cent in the quarter under review.

 

Home Care delivered 4 per cent USG; Beauty & Wellbeing delivered 7 per cent USG with a low-single digit UVG; Personal Care grew 6 per cent, driven by calibrated pricing actions taken due to commodity inflation, and Foods delivered 5 per cent USG with a mid-single digit UVG. Beverages (Tea and Coffee) grew in double digits. 

HUL management commentary 

-H1 FY26 is expected to be better than H2 FY25, driven by portfolio changes and a stronger macro environment. If commodity prices stay stable, price growth will likely remain in the low single digits.

-Gross margins are expected to improve sequentially and to fuel further investments.

-Consolidated Ebitda is likely to remain within the 22-23 per cent range

-The company will focus on competitive volume-led growth.