Hindustan Unilever Q1 profit up 5.6% to ₹2,756 cr, beats estimates on volume growth.

Hindustan Unilever Ltd (HUL) reported a 5.6% YoY rise in consolidated net profit for Q1FY26 to ₹2,756 crore, beating analysts' expectations. Revenue rose 5.1% YoY to ₹16,514 crore. Rural and urban demand showed signs of improvement, with volume growth rebounding to 4% after three consecutive quarters. CEO Rohit Jawa noted that rural markets led the recovery, while urban demand has started to improve, driven by consumption in smaller cities and towns.

Hindustan Unilever Ltd (HUL) reported a robust financial performance for the June quarter (Q1FY26), with a 5.6% year-over-year (YoY) rise in consolidated net profit to ₹2,756 crore, surpassing analyst expectations. Revenue climbed 5.1% YoY to ₹16,514 crore, indicating a strong recovery in both rural and urban demand. CEO Rohit Jawa noted that rural markets led the recovery, while urban demand has started to improve, driven by consumption in smaller cities and towns [1].

The company's volume growth rebounded to 4% after three consecutive quarters of subdued growth, driven primarily by the rural sector. This turnaround was attributed to favorable macroeconomic conditions, including government incentives, lower interest rates, and a favorable monsoon forecast [2]. Additionally, HUL's strategic investments in consumer promotions, brand expansions, and distribution channels have contributed to the resurgence in demand.

Despite the positive trends, HUL faced challenges such as input cost inflation and competitive pressures in certain segments. However, the company's resilience and strategic initiatives have helped mitigate these headwinds. The earnings come amid a leadership transition, with Priya Nair set to succeed Rohit Jawa as the new CEO and MD on August 1, 2025.

Analysts remain optimistic about HUL's prospects, attributing the strong performance to a combination of favorable macroeconomic indicators, strategic investments, and a gradual recovery in urban markets. The broader FMCG sector is also showing signs of improvement, although unseasonal rains disrupted demand in certain categories during the quarter [1].

References:

[1] https://www.livemint.com/companies/company-results/hul-q1-results-fy26-volume-growth-muted-margin-pressure-rural-demand-11753933209955.html
[2] https://www.livemint.com/companies/hindustan-unilever-lux-soaps-knorr-soups-tax-loan-emi-repo-rate-rohit-jawa-food-inflation-fmcg-surf-excel-11753958018210.html