HINDUNILVR

Hindustan Unilever’s (HUVR) 4QFY25 consolidated revenue was up 3% at INR154.5b (in line), with 2% underlying volume growth (est. 1%, 0% in 3QFY25). Rural demand continues to show gradual improvement, while urban demand remains subdued. Home Care delivered mid-single-digit volume growth, with revenue up 2%. The company passed on commodity deflation benefits to consumers through calibrated price reductions. However, the segment experienced EBIT margin contraction, with EBIT declining 2% YoY. The Beauty & Wellbeing segment witnessed low single-digit volume growth and 6% revenue growth, impacted by the mass skin portfolio. The Hair Care portfolio reported double-digit growth, fueled by volume and company has done several new launches ahead of the summer season. Margin witnessed an expansion, with EBIT up 15% YoY. The company plans to focus aggressively on volume acceleration, alongside new launches and the reactivation of its value proposition, which is expected to drive better growth in FY26. We reiterate our BUY rating on the stock with a TP of INR 2,850 (55x on Mar’27E EPS).