HUL Q1 Profit Declines 3% Despite Double-Digit Revenue Growth

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628

reported a 3% year-on-year decline in consolidated net profit to ₹2,673 crore for the first quarter of FY27. The decline was primarily due to the absence of a one-time tax credit that had boosted profit in the corresponding quarter last year. On an underlying operational basis, the company delivered its strongest sales growth in 13 quarters, reflecting improved demand across its portfolio. Revenue from operations increased 10% year-on-year to approximately ₹17,149 crore, driven by a combination of price increases and healthy demand across product categories. Underlying volume growth stood at 5%, indicating continued consumer demand despite inflationary pressures. Operating performance remained resilient, with EBITDA of about ₹3,947 crore and an EBITDA margin of 22.8%, supported by disciplined cost management even as input costs remained elevated. The company continued to witness broad-based growth across its Home Care, Beauty & Wellbeing, Personal Care, and Foods businesses. Industry & Economic Impact: The results indicate improving demand in India's fast-moving consumer goods (FMCG) sector, supported by gradual recovery in consumption and stable pricing across categories. Strong revenue and volume growth suggest that consumer spending on everyday essentials remains resilient despite ongoing cost pressures, highlighting the sector's defensive nature. From an economic perspective, healthy growth in the FMCG sector reflects sustained household consumption, which is a key driver of India's economy. Continued demand for consumer goods supports manufacturing, rural and urban distribution networks, employment, and agricultural supply chains, contributing to broader economic growth. Source: NDTV Profit No Recommendations