Hindustan Unilever Q1 results: Brokerages optimistic on growth outlook, hike target price.

Hindustan Unilever (HUL) reported Q1FY26 results, with a 5.6% YoY rise in consolidated net profit to ₹2,756 crore, beating estimates. Revenue rose 5.1% YoY to ₹16,514 crore, and brokerages are optimistic about the company's growth outlook. Nuvama Institutional Equities raised its target price to ₹3,240 per share, while Emkay Global Financial Services increased its target to ₹2,700 per share. ICICI Securities maintained an 'Add' rating with an unchanged target of ₹2,850 per share.

Hindustan Unilever Ltd (HUL) reported its Q1FY26 results, showcasing a 5.6% year-over-year (YoY) rise in consolidated net profit to ₹2,756 crore. The company's revenue surged by 5.1% YoY to ₹16,514 crore, driven by robust volume growth. The results have been well-received by brokerages, with several firms raising their target prices and maintaining positive ratings.

The company's shares climbed 3.5% following the announcement, reaching Rs 2,521.85 on the BSE and Rs 2,521.20 on the NSE. The market valuation of HUL surged by Rs 19,936.28 crore to Rs 5,92,531.67 crore, making it the biggest gainer among Sensex and Nifty firms [1].

HUL's net profit rose to ₹2,768 crore in the June quarter, up 5.97% from the same period last year. Revenue from the sale of products increased by 5.15% to ₹16,296 crore, led by a 4% increase in volume growth. The company's market valuation surged by Rs 19,936.28 crore to Rs 5,92,531.67 crore [2].

Brokerages have shown optimism about HUL's growth outlook. Nuvama Institutional Equities raised its target price to ₹3,240 per share, while Emkay Global Financial Services increased its target to ₹2,700 per share. ICICI Securities maintained an 'Add' rating with an unchanged target of ₹2,850 per share [3].

The company's EBITDA margin contracted by 120 basis points to 22.3% from 23.5% last year. However, the management expects gross margins to improve sequentially through better price versus cost gap, improved mix, and accelerating end-to-end net productivity programs. The management also expects EBITDA margins to remain in the 22% to 23% range over the next few quarters [2].

HUL's new Managing Director & CEO, Priya Nair, will take charge after incumbent Rohit Jawa's term completion. The company has highlighted that growth in the first half of the current financial year is likely to be higher than the second half of the previous financial year [2].

References:
[1] https://money.rediff.com/news/market/hul-q1-earnings-surge-shares-climb-3-5/31161020250731
[2] https://www.cnbctv18.com/market/hindustan-unilever-hul-q1-results-revenue-margins-volume-growth-fy26-outlook-segments-share-price-19646411.htm
[3] https://www.freepressjournal.in/business/fmcg-major-hindustan-unilever-reports-597-rise-in-net-profit-to-2768-crore-for-june-quarter