HUL Share Price declines 3% as Profit Declines 4%

28 Jul 2026 , 11:00 AM

HUL Share Price Today: Stock Falls Over 3.5% Despite Double-Digit Revenue Growth

Shares of Hindustan Unilever Ltd. (HUL) came under significant selling pressure on Tuesday after the FMCG giant reported its Q1 FY27 earnings. While the company posted double-digit revenue growth and healthy volume expansion, investors remained concerned over declining profit margins caused by higher commodity costs and rising operating expenses.

HUL shares closed the previous session at ₹2,174.60 and opened at the same level on Tuesday. The stock briefly touched an intraday high of ₹2,213, but selling intensified through the session, dragging it to a low of ₹2,062.70. At the time of writing, the stock was trading at ₹2,095.50, down 3.64% from the previous close.

The market reaction reflects concerns that inflationary pressures and geopolitical uncertainties could continue to weigh on profitability despite healthy consumer demand.

HUL Q1 FY27: Revenue Crosses ₹17,000 Crore

Hindustan Unilever delivered another strong quarter in terms of sales growth.

The company reported standalone revenue from operations of ₹16,514 crore, up 10% year-on-year, while consolidated revenue increased 10.2% to ₹17,149 crore. Total income for the quarter stood at ₹17,529 crore.

According to the company, this marks its highest quarterly turnover in the last 13 quarters, reflecting resilient consumer demand and strong execution across product categories.

Volume-Led Growth Supports Performance

HUL reported 10% Underlying Sales Growth (USG) during the quarter.

Importantly, the growth was balanced between:

• 5% underlying volume growth, indicating healthy consumer demand.
• 5% pricing growth, reflecting the company’s ability to pass on higher input costs.

The balanced mix suggests demand remains stable despite ongoing inflationary pressures.

Net Profit Declines Due to Higher Costs

Despite strong revenue growth, profitability came under pressure.

The company reported:

• Standalone net profit of ₹2,631 crore, down 4% year-on-year.
• Consolidated profit from continuing operations of ₹2,680 crore, down 2.2% from the corresponding quarter last year.

The decline was primarily driven by higher commodity prices, increased operating expenses, and one-time restructuring costs.

Commodity Inflation Compresses Margins

Margins remained under pressure during the quarter.

HUL’s core EBITDA margin contracted by 40 basis points to 22.8%, as higher raw material costs continued to impact profitability.

The company highlighted several key challenges:

• Persistent commodity inflation.
• Elevated palm oil prices.
• Global geopolitical disruptions, including the ongoing Middle East conflict.
• Continued volatility in input costs.

Management also cautioned that commodity inflation is expected to remain elevated over the near term.

Underlying Earnings Remain Strong

Although reported earnings declined, the underlying business remained healthy.

During the quarter, HUL incurred:

• ₹115 crore in restructuring expenses.
• ₹5 crore related to acquisitions and disposals.

Excluding these one-time costs, profit increased 9% to ₹3,623 crore, indicating that the core business continued to perform well.

Expenses Continue to Rise

The company’s cost base increased alongside revenue.

Key highlights include:

• Total expenses rose 10% year-on-year to ₹13,822 crore.
• Advertising and promotional expenditure increased 3.6% to ₹1,657 crore, reflecting HUL’s continued investment in strengthening its brands and expanding market share.

The company continues to prioritize long-term brand building despite short-term cost pressures.

Segment Performance: Home Care and Beauty Lead Growth

Home Care

Home Care remained HUL’s largest business segment.

• Revenue: ₹6,554 crore
• 14% Underlying Sales Growth
• High single-digit volume growth.
• Strong demand for fabric wash and household cleaning products.

Beauty & Wellbeing

Beauty & Wellbeing continued to deliver impressive performance.

• Revenue: ₹4,083 crore
• 12% Underlying Sales Growth
• Premium Hair Care recorded double-digit growth.
• Minimalist continued its strong momentum with double-digit growth.

Personal Care

• Revenue: ₹2,624 crore
• 4% Underlying Sales Growth
• Growth was primarily driven by pricing amid continued palm oil inflation.

Foods

• Revenue: ₹3,480 crore
• 7% Underlying Sales Growth
• Mid-single-digit volume growth.
• Coffee delivered strong double-digit volume-led growth.
• Bru Gold and Ready-to-Drink coffee continued gaining traction.

OZiva

HUL noted softer performance in OZiva during the quarter as the business transitions following the acquisition of the remaining 49% stake earlier this year.

Management Commentary

Managing Director and CEO Priya Nair said the Indian economy remained resilient despite global geopolitical uncertainties, supported by proactive fiscal and monetary measures.

She emphasized that stable consumer demand, stronger brand competitiveness, channel expansion, and portfolio transformation continue to support the company’s long-term growth strategy.

The management reiterated its focus on driving volume-led revenue growth while continuing investments in market development and premiumization.

Why Did HUL Shares Fall?

Despite reporting double-digit revenue growth, the market focused on profitability.

The key reasons behind the decline in HUL’s share price include:

• Reported net profit declined despite higher sales.
• Core EBITDA margin contracted to 22.8%.
• Commodity inflation remains a major concern.
• Rising raw material costs continue to pressure margins.
• Investors remain cautious about near-term earnings growth amid persistent inflationary and geopolitical challenges.

Outlook

Hindustan Unilever delivered one of its strongest revenue performances in recent quarters, supported by balanced volume and pricing growth across key business segments. Home Care, Beauty & Wellbeing, and Foods continued to drive sales momentum, while sustained investments in premium brands and market expansion strengthen the company’s long-term competitive position.

However, higher commodity costs, inflationary pressures, and geopolitical disruptions continue to weigh on margins and reported profitability. While the market reacted negatively to the earnings announcement, the company’s underlying performance—excluding one-time restructuring expenses—remains encouraging.

Going forward, investors will closely monitor commodity price trends, margin recovery, consumer demand, and HUL’s ability to sustain volume-led growth while protecting profitability. With its market-leading brands, diversified portfolio, and strong execution capabilities, HUL remains well positioned for long-term growth despite near-term headwinds.

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