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%.
Also Read: Sensex Falls 340 Pts, Nifty Holds 24,750; FMCG Stocks Outperform
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.
Click here to explore Hindustan Unilever Ltd (HUL) Share Price
