FMCG Giant Reports Highest Growth in 13 Quarters; Q1 FY27 Revenue Rises 10% Despite 6% Share Price Decline

On Tuesday, Indian benchmark indices traded in positive territory, with the Nifty 50 rising 26.45 points, or 0.11 per cent, to 24,022.40. Despite the positive market sentiment, Hindustan Unilever (HUL) share price declined 5.61 per cent to Rs 2,052.60 following the announcement of its June quarter earnings.

HUL Q1 FY27 Financial Performance

On a consolidated basis, revenue from operations increased 10.3 per cent YoY to Rs 17,149 crore in Q1 FY27 from Rs 15,552 crore in the corresponding quarter last year. Total sales stood at Rs 17,184 crore, marking the company's highest quarterly growth in the last 13 quarters, supported by 10 per cent Underlying Sales Growth (USG) and 5 per cent Underlying Volume Growth (UVG).

EBITDA increased 8.4 per cent YoY to Rs 3,947 crore from Rs 3,640 crore, while the EBITDA margin stood at 23.0 per cent, down 40 basis points year-on-year as the company continued investing behind brands amid a volatile operating environment.

Profit Before Tax (before exceptional items) rose 9.3 per cent YoY to Rs 3,707 crore from Rs 3,393 crore. Profit After Tax before exceptional items increased 9.3 per cent YoY to Rs 2,731 crore from Rs 2,498 crore. However, reported Profit After Tax declined 2.2 per cent YoY to Rs 2,680 crore from Rs 2,741 crore, primarily due to a one-off tax credit recorded in the base quarter (JQ25). Basic earnings per share stood at Rs 11.38 compared with Rs 11.62 a year ago.
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Segment Performance

The Home Care business delivered 14 per cent Underlying Sales Growth, its highest growth in three years, led by strong demand in Fabric Wash and Household Care while strengthening market leadership.

The Beauty & Wellbeing segment recorded 12 per cent Underlying Sales Growth, supported by robust demand for Premium Skin Care, Hair Care and continued double-digit growth in the Minimalist brand.

The Personal Care business posted 4 per cent Underlying Sales Growth, driven by premium soaps and continued strength in the Bodywash portfolio despite higher palm oil prices.

The Foods segment delivered 7 per cent Underlying Sales Growth, led by strong performance in Lifestyle Nutrition, Coffee and Packaged Foods. During the quarter, Boost crossed the Rs 1,000 crore annual turnover milestone, while the company expanded its premium offerings through new product launches across Bru, Red Label and Kissan.

Management Commentary

Commenting on the results, 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 ₹17,184 crores and 10% USG, driven equally by volume and price. 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."

About Hindustan Unilever

Hindustan Unilever Ltd (HUL) is India's largest fast-moving consumer goods (FMCG) company with a diversified portfolio spanning Home Care, Beauty & Wellbeing, Personal Care and Foods & Refreshment. The company owns several leading brands across detergents, soaps, skincare, haircare, tea, coffee, nutrition and packaged foods.

The company has a strong nationwide manufacturing and distribution network and continues to focus on premiumisation, innovation, digital transformation and sustainability. Through investments in AI, advanced manufacturing, product innovation and omnichannel distribution, HUL is strengthening its long-term growth platform while maintaining leadership across multiple consumer categories.

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Disclaimer: The article is for informational purposes only and not investment advice.