HUL Q1 preview: What analysts expect from FMCG giant? Check estimates, date

HUL Q1 preview: HUL will report its Q1 numbers this week; here's what the Street expects from the FMCG giant

 

Hindustan Unilever (HUL) Q1 results preview: Hindustan Unilever (HUL), known for its iconic brands Horlicks, Dove, and Lifebuoy, is slated to release its first quarter (Q1FY26) results on Thursday, July 31, 2025. Brokerages believe the company's growth in Q1 was impacted by several factors, including adverse mix dynamics, input cost inflation, and subdued seasonal demand, collectively moderating the overall growth trajectory.

HUL Q1 results 2025: Profit estimates

Brokerages tracked by Business Standard estimate HUL's net profit to decline 1.2 per cent year-on-year (Y-o-Y) on average, to ₹2,540.6 crore as compared to ₹2,572 crore. Sequentially, the net profit is expected to rise 2 per cent from ₹2,497 crore in Q4FY25.

 

Make smarter market moves with The Smart Investor. Daily insights on buzzing stocks and actionable information to guide your investment decisions delivered to your inbox.

Subscribe

HUL Q1 results 2025: Revenue expectations

The company's revenue for the quarter under review is expected to increase 4.8 per cent in the first quarter (Q1FY26), on average, to ₹16,081 crore as compared to ₹15,339 crore a year ago. 

 

On a quarter-on-quarter (Q-o-Q) basis too, the revenue is poised to increase 6 per cent from ₹15,214 crore in Q4FY25, on the back of growth in underlying volume growth (UVG).  ALSO READ | Will Air India crash aid IndiGo Q1 results? Check date, time, expectations

How will HUL fare in Q1FY26? Brokerages decode

Kotak Institutional Equities: The brokerage expects Q1 to be largely in line with management's guidance on the Q4 call; there has not been any change in urban/rural demand against last quarter. The brokerage anticipates a 3.7 per cent Y-o-Y revenue growth to ₹15,912.1 crore, as against ₹15,339 crore, led by 3 per cent Y-o-Y growth in underlying volume growth (UVG).

 

Further, the home care segment is expected to grow 2.5 per cent Y-o-Y as against 1.8 per cent Y-o-Y in Q4, as volume growth is offset by negative pricing growth/higher promotional intensity. Beauty and personal care (BPC) revenues are forecasted to be 5 per cent Y-o-Y as against 3.7 per cent Y-o-Y in Q4, aided by price hikes in soaps. Fashion and retail segment is expected to grow 2.8 per cent, as compared to a 0.4 per cent decline in Q4, led by price hikes in tea. 

 

Gross margins are anticipated to decline marginally by 25 basis points (bps) Q-o-Q and down 125 bps Y-o-Y to 50.2 per cent. Analysts at Kotak estimate Earnings before interest, tax, depreciation and amortisation (Ebitda) margin, down 110 bps Y-o-Y to 22.4 per cent from 23.5 per cent. 

 

Meanwhile, Ebitda is expected to decline 1.1 per cent Y-o-Y to ₹3,565.6 crore, as compared to ₹3,606 a year ago. 

 

Emkay Global Financial Services: Moderate growth improvement for the company is expected in Q1 for HUL, by the brokerage. With growth of 3 per cent in volume and 1 per cent in price, Emkay sees 4 per cent revenue growth Y-o-Y in Q1FY26 to ₹15,927.5 crore, as against ₹15,339 crore. 

 

The home care segment growth is anticipated by 4 per cent, while personal wash is likely to see 3 per cent growth, with select soap stock keeping unit (SKU) price hikes in April 2025. Beauty and Wellbeing is likely to clock a mid-single-digit growth, with increased trade interventions. Foods and refreshments are expected to see a low single-digit growth. 

 

The company has stepped up investments in trade. Given increased business investments, gross margin is likely to see a contraction Q-o-Q to 50 per cent, as against 50.5 per cent in Q4. 

 

Organic Ebitda margin is likely to range in the 22-23 per cent band in H1FY26, per management guidance in its Q4FY25 earnings call. Consolidated Ebitda is expected at ₹3,519 crore, as compared to ₹3,606 crore a year ago. The brokerage pegs a 22.1 per cent Ebitda margin for Q1, implying 140 bps Y-o-Y and 70 bps Q-o-Q contraction.   ALSO READ | PB Fintech Q1 preview: What to expect from the operator of Policybazaar? 

Motilal Oswal Financial Services: Demand trends remained consistent Q-o-Q with muted growth, and rural areas continued to outperform urban areas, according to Motilal Oswal analysts. They expect a 4.6 per cent revenue growth in Q1FY26 to ₹16,420 crore, as compared to ₹15,339 crore a year ago. 

 

Gross profit margins are expected to contract 140 bps Y-o-Y to 50.6 per cent, due to an increase in consumer offers and other initiatives undertaken to drive volume growth. The brokerage forecasts a 3 per cent volume growth in Q1. 

 

Nuvama Institutional Equities: The brokerage in Q1 expects underlying consolidated volumes to grow 3 per cent Y-o-Y. Consolidated Ebitda is likely to decrease 2.2 per cent Y-o-Y to ₹3,663.3 crore in Q1FY26. 

 

Gross margin is likely to decline 196 bps Y-o-Y/135 bps Q-o-Q to 50 per cent as the company passed on cost corrections to the end customers, while Ebitda margin shall fall 132 bps Y-o-Y/63 bps Q-o-Q to 22.8 per cent.