Hindustan Unilever Ltd (HUL) reported a 6% year-on-year rise in consolidated net profit to ₹2,768 crore for the quarter ended June 2025, supported by volume-led growth and a lower tax outgo. The FMCG major’s revenue rose 5% to ₹16,323 crore, with underlying volume growth (UVG) at 4% and underlying sales growth (USG) at 5%, the company stated in its stock exchange filing.
EBITDA Margin Narrows Despite Volume Gains
The company’s EBITDA for Q1 stood at ₹3,718 crore, slightly lower than ₹3,744 crore in the year-ago period. Consequently, EBITDA margin contracted 130 basis points to 22.8%, in line with guidance. HUL attributed this to its continued investments in portfolio transformation and innovation.
Meanwhile, profit after tax (before exceptional items) declined 5% year-on-year to ₹2,526 crore. The final net profit was aided by a one-time tax re-estimation, resulting in lower tax expenses that boosted PAT by 12%.
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Segment-Wise Performance Highlights
Home Care: 4% USG, driven by strong volume growth
Fabric Wash: Mid-single digit volume growth led by Surf Excel
Household Care: Double-digit volume growth, led by liquid detergents
Beauty & Wellbeing: 7% USG; Hair Care and Skin Care grew in low to mid-single digits
Personal Care: 6% growth, led by premium soaps, bodywash, and Closeup in Oral Care
Foods & Refreshments: 5% USG with tea, coffee, and ice cream contributing to growth
Packaged Foods and Nutrition: Continued market strength
New Launches and Acquisition Integration
During the quarter, HUL launched several new products across categories. Notably, the company integrated Uprising Science Pvt Ltd (USPL)—owner of Minimalist—which it had acquired for ₹2,706 crore in April 2025. USPL’s financials were included in Q1 results.
Exceptional Items
Exceptional items for the quarter stood at ₹127 crore, which included:
₹91 crore in restructuring costs
₹34 crore reversal of an indemnification asset
CEO’s Commentary
HUL CEO & MD Rohit Jawa stated:
“FMCG demand has remained stable with a gradual uptick in recent trends. We’ve strategically increased investments to drive portfolio transformation. This has led to competitive, broad-based growth.”
Neutral Analysis
HUL’s Q1 performance reflects steady volume-led growth across core categories despite inflationary and pricing challenges. While EBITDA margin pressure remains, the company continues to invest in innovation and premiumisation. The integration of new-age brands like Minimalist aligns with HUL’s long-term digital and product expansion strategy.
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