HUL’s Q1 net up 6% to Rs 2,768 cr
Led by tax re-estimation, net profit for June qtr rose to `2,768 cr from `2,1612 cr in a year ago qtr; PBT fell 6.4% to Rs3,303 cr; Its mcap surges `19,936 cr to Rs5.93 lakh cr
New Delhi: FMCG major Hindustan Unilever Ltd (HUL) on Thursday reported a 5.97 per cent rise in its consolidated net profit to Rs2,768 crore for the June quarter of FY26, helped by gains from a re-estimation of taxes paid in the previous year.
The company had logged a net profit of Rs2,612 crore in the April-June quarter a year ago, according to a regulatory filing from HUL, the maker of popular brands as Dove, Lifebuoy, Lux, Lakmé, and Sunsilk. Revenue from the sale of products of the leading FMCG firm was up 5.15 per cent at Rs16,296 crore in the June quarter, led by volume growth. This was at Rs15,497 crore in the corresponding quarter a year ago.
“HUL reported a consolidated underlying Sales Growth (USG) of 5 per cent and an Underlying Volume Growth (UVG) of 4 per cent,” the company said in its earnings statement. In the June quarter, HUL’s profit before tax was lower by 6.4 per cent to Rs3,303 on a year-on-year basis. It was at Rs3,529 crore in the corresponding June quarter of FY25. While its Profit after Tax (PAT) was up nearly 6 per cent. Commenting on the results, HUL CEO and Managing Director Rohit Jawa said FMCG demand has continued to remain stable, with a gradual uptick in recency.
“Encouraged by favourable macro-economic indicators, we strategically stepped up our investments to effectively advance our portfolio transformation agenda in this quarter. As a result, we delivered competitive, broad-based growth with an Underlying Sales Growth of 5 per cent, driven by an Underlying Volume Growth of 4 per cent, at a consolidated level,” he said. Over the outlook, Jawa said he expects this “gradual recovery to be sustained”. The company’s market valuation surged by Rs19,936.28 crore to Rs5,92,531.67 crore. The stock emerged as the biggest gainer among the Sensex and Nifty firms.
According to HUL, the difference “is on account of a one-off impact of re-estimation of tax provisions with respect to the potential disallowance of certain expenses pertaining to prior years.”
During the quarter, HUL’s EBITDA margin stood at 22.8 per cent, down 130 basis points year-on-year, as the FMCG major continued to step up investments in its business.
