HUL Posts 5% Sales Growth and 4% Volume Increase in Q1 FY26; Profit Impacted by One-Off Tax Provision

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Rohit Jawa, Chief Executive Officer and Managing Director, Hindustan Unilever Limited

Hindustan Unilever Limited (HUL) reported a consolidated underlying sales growth (USG) of 5% and underlying volume growth (UVG) of 4% for the quarter ended 30th June 2025. The company’s EBITDA margin stood at 22.8%, down by 130 basis points compared to the same period last year. The margin movement was in line with expectations as the company continued to raise investments across its key business areas.

Profit after tax before exceptional items declined 5%, primarily due to a one-time adjustment related to earlier tax provisions. However, net profit after tax rose by 6%, reflecting the resolution of these prior-year issues. On a standalone basis, HUL recorded 4% sales growth, 3% volume growth, and an 8% increase in profit after tax.

The Home Care segment delivered a 4% growth in sales during the quarter, largely driven by high-single digit growth in volumes. A reduction in prices, implemented to reflect falling input costs, had a modest impact on sales value. Despite this, the volume-led performance remained strong, highlighting the company’s focus on maintaining a competitive price-value balance for consumers.

Within Fabric Wash, mid-single digit volume growth was recorded, with Surf Excel continuing to lead demand. The brand’s performance was bolstered by steady consumer preference for trusted detergents. At the same time, the Household Care category delivered impressive double-digit volume growth, driven by robust sales of dishwashing products, which remained a standout performer.

The liquids portfolio sustained its double-digit growth momentum, reaffirming consumer interest in convenient and efficient home cleaning solutions. Innovations in this category supported strong traction, with new launches such as Surf Excel Matic Express, formulated specifically for quick wash cycles, and the relaunch of Vim Pro Clean Liquids featuring advanced RhamnoTech technology for superior kitchen hygiene.

In the Beauty & Wellbeing division, sales increased by 7%, with volume growth in the low single digits. Hair Care was a key contributor, achieving mid-single digit growth, particularly from the “Future Core” and “Market Makers” product lines. Skin Care and Colour Cosmetics registered modest gains, led by brands such as Ponds, Vaseline, and Simple, which outperformed expectations in their categories.

Health and Wellbeing was the fastest-growing area in the division, with OZiva tripling its turnover year-on-year. Additionally, emerging distribution channels—referred to as “Channels of the Future”—continued to perform well, delivering double-digit growth. New product introductions in the quarter included Nexxus, a premium haircare range backed by science, the Dove Peptide Bond Strength line, Boost Protein for adult nutrition, and an expanded tea portfolio offering a more flavorful experience.

Rohit Jawa, CEO and Managing Director, said “FMCG demand remained stable this quarter, with a slight upward trend in recent weeks. With macroeconomic conditions showing promise, we made strategic investments to push forward our portfolio transformation. Our efforts have translated into solid, broad-based performance, with 5% sales growth led by a 4% volume increase at the consolidated level.”

He added “Looking ahead, I expect this gradual recovery to continue. Our ASPIRE strategy will help us strengthen our position in high-potential segments and emerging distribution channels. With a focus on brand excellence, innovation, and digital media, we aim to maintain volume-led growth and deliver lasting value to shareholders.”

Hindustan Unilever Limited (HUL) is one of India’s largest and most prominent fast-moving consumer goods (FMCG) companies. A subsidiary of the global consumer goods giant Unilever, HUL operates in diverse sectors, including food and beverages, home and personal care, and health and wellness products.

Established in 1933, the company has built a strong portfolio of well-known brands, such as Dove, Lipton, Surf Excel, and Knorr, which have become household names in India and beyond. HUL is renowned for its commitment to sustainability, with initiatives focused on reducing its environmental footprint, promoting responsible sourcing, and supporting community development. As a market leader, HUL continues to adapt to evolving consumer needs, innovating with new products and solutions while maintaining a strong emphasis on quality, trust, and social responsibility.