HUL sales climb 10 per cent in Q1 as tax effect nudges net profit down 2 per cent

Mumbai: It was a clean sweep for sales, even if the profit tally needed a little polishing. Hindustan Unilever Limited (HUL) reported double-digit revenue growth in the June quarter, but a high tax base from a year ago left its headline net profit looking slightly less sparkling.

India’s largest fast-moving consumer goods company posted total sales of Rs 17,184 crore for the quarter ended June 2026, up 10 per cent from Rs 15,622 crore in the corresponding quarter last year. Net profit, however, slipped 2 per cent to Rs 2,680 crore, compared with Rs 2,741 crore a year earlier. The decline was largely driven by a one-time tax credit recognised in the year-ago quarter, which created a high comparison base rather than reflecting any weakness in the company’s underlying business.

Strip away those exceptional items and the picture looks considerably brighter. Profit before tax before exceptional items increased 9 per cent to Rs 3,707 crore, while profit after tax before exceptional items also rose 9 per cent to Rs 2,731 crore, underlining steady demand across HUL’s portfolio despite a challenging operating environment.

Home Care emerged as the standout performer during the quarter. Revenue from the segment climbed to Rs 6,554 crore, up from Rs 5,777 crore a year earlier, while segment profit rose to Rs 1,137 crore. Beauty & Wellbeing also delivered a strong performance, with revenue increasing from Rs 3,631 crore to Rs 4,083 crore and segment profit reaching Rs 1,126 crore.

Growth in Personal Care was more measured but remained positive. Revenue edged up to Rs 2,624 crore from Rs 2,540 crore, generating a segment profit of Rs 517 crore. Meanwhile, the Foods business continued its steady momentum, with revenue rising from Rs 3,259 crore to Rs 3,480 crore, while segment profit came in at Rs 692 crore.

Operationally, the company continued to deliver healthy cash generation. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 8 per cent to Rs 3,947 crore. However, higher commodity costs and ongoing input price volatility squeezed profitability, resulting in the EBITDA margin narrowing by 40 basis points to 23.0 per cent.

HUL also maintained a strong focus on brand building, investing Rs 1,598 crore in advertising and promotional activities during the quarter to support demand across its product portfolio amid intense competition in the fast-moving consumer goods market.

The quarter also included a net exceptional charge of Rs 75 crore. This consisted of Rs 115 crore in organisational restructuring expenses and Rs 5 crore related to acquisition and disposal costs. These were partially offset by a Rs 45 crore gain from the sale of surplus assets.

Although the exceptional charges and last year’s one-off tax benefit weighed on reported earnings, HUL’s underlying performance remained resilient. With double-digit sales growth, stronger operating profits and broad-based gains across Home Care, Beauty & Wellbeing, Foods and Personal Care, the FMCG giant has shown that its core growth engine remains firmly intact despite persistent cost pressures.