Hindustan Unilever Limited (HUL), one of India’s foremost FMCG majors, announced its unaudited standalone and consolidated financial results for the quarter ended 30th June 2025 (Q1 FY26) after its Board meeting held on 31st July 2025. The company registered a 6% year-on-year (YoY) growth in consolidated Profit After Tax (PAT), demonstrating resilience amid a moderately inflationary environment.

Key Financial Highlights:

• Consolidated Total Income stood at ₹16,323 crores, reflecting a 5% growth from ₹15,497 crores in Q1 FY25.

• Consolidated Profit After Tax (PAT) was reported at ₹2,768 crores, up from ₹2,612 crores in the corresponding quarter last year.

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the quarter came in at ₹3,718 crores, with an EBITDA margin of 22.8%, down by 130 basis points YoY.

• The company posted basic and diluted earnings per share of ₹11.11 for Q1 FY26, identical to the year-ago quarter.

Revenue and Segmental Performance:

HUL operates across multiple categories, with its business performance analyzed under five primary segments:

1. Home Care:
   Revenue was ₹5,673 crores. Marginal YoY decrease, but segment profits remained steady at ₹1,136 crores.

2. Beauty & Wellbeing:
   Delivered ₹3,281 crores in revenue. Segment results were ₹1,001 crores.

3. Personal Care:
   Revenue for the quarter was ₹2,386 crores. Segment result came in at ₹425 crores.

4. Foods:
   Revenue was ₹3,850 crores, with segment profits rising to ₹736 crores.

5. Others (including exports):
   Revenue stood at ₹517 crores. Segment result was ₹117 crores.

The total segment revenue amounted to ₹15,707 crores while total segment results stood at ₹3,415 crores.

Cost and Margin Analysis:

• Cost of materials consumed decreased to ₹4,874 crores compared to ₹5,467 crores in the previous quarter.

• Purchase of stock-in-trade remained under pressure at ₹2,728 crores.

• Advertisement and promotion expenses were ₹1,681 crores, slightly up YoY, emphasizing brand investments.

• Other expenses amounted to ₹2,081 crores, showing stability in cost management.

Exceptional Items and Tax Savings:

Exceptional items for Q1 FY26 amounted to a net charge of ₹48 crores, including:

• ₹91 crores of restructuring expenses

• ₹34 crores of reversal on expiry of income tax indemnification asset

• ₹3 crores acquisition and disposal related costs

• ₹1 crore from asset disposals

Tax expenses reduced significantly during the quarter, driven by re-estimation of prior year tax provisions, leading to a 12% positive impact on PAT growth.

Standalone Performance Highlights:

On a standalone basis:

• Total revenue was reported at ₹15,596 crores.

• Standalone PAT came in at ₹2,538 crores.

• Earnings per share (basic and diluted) stood at ₹10.80.

Recent Acquisition:

HUL completed the acquisition of Uprising Science Private Limited, the company behind the 'Minimalist' skincare and haircare brand, on 21st April 2025. The deal, valued at ₹2,706 crores, resulted in USPL becoming a subsidiary included in Q1 FY26’s consolidated results. USPL contributed revenue and profit from April 21 to June 30.

The acquisition added further depth to HUL’s Beauty & Wellbeing portfolio, strengthening its positioning in the high-growth premium skincare segment.

Audit Observations:

Both the standalone and consolidated financials were reviewed by statutory auditors Walker Chandiok & Co LLP, who issued unmodified (clean) opinions.

The auditor also highlighted reliance on:

• Review of Unilever Nepal Limited’s financials by another auditor.

• Unaudited financials of joint venture Nutritionalab Pvt Ltd, whose contribution was immaterial.

Balance Sheet Overview:

• Total consolidated assets as of 30th June 2025 stood at ₹79,880 crores.

• Total consolidated liabilities were ₹30,271 crores.

• Equity Share Capital remained unchanged at ₹235 crores.

Management Commentary and Future Outlook:

In the official communication, Rohit Jawa, Managing Director and CEO, reiterated the company’s commitment to driving long-term value creation through portfolio diversification, premiumisation, and digital transformation.

He acknowledged that while macroeconomic uncertainties and inflationary pressures persist, the company is focused on cost efficiencies, innovation, and sustainable growth.

The inclusion of Minimalist is expected to boost premium product offerings, especially in D2C (Direct-to-Consumer) channels, strengthening HUL’s reach among digitally savvy consumers.

Board and Compliance Notes:

• The Board Meeting commenced at 08:30 AM and concluded discussion on financial results by 09:25 AM IST.

• Other agenda items were taken up post conclusion of the financial item.

• The results will be published in newspapers and shared with BSE and NSE as required under Regulation 47 of SEBI Listing Regulations, 2015.

The results were reviewed by the Audit Committee on 30th July 2025, and formally approved by the Board of Directors on 31st July 2025.

Conclusion:

Hindustan Unilever’s Q1 FY26 performance demonstrates stable growth amid dynamic market conditions. While operating margins saw slight contraction, strategic acquisitions, cost rationalisation, and a robust product portfolio continue to drive the company forward. The market will closely watch the integration of Minimalist, developments in tax positions, and future innovations in personal and beauty care as HUL progresses through FY26.

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