Hindustan Unilever (HINDUNILVR) Q1 26/27 earnings summary

Executive summary

• Achieved highest quarterly sales growth in 13 quarters, with turnover at ₹17,184 crore and underlying sales growth (USG) of 10%, equally driven by volume and price.

• Underlying volume growth (UVG) was 5% year-over-year, with continued strengthening of competitiveness and market leadership.

• Delivered strong performance in a volatile environment, leveraging supply chain resilience, digital transformation, and brand investments.

• Focused on innovation, premiumization, and expanding omnichannel presence, including strong growth in quick commerce and digital-first brands.

• Profit after tax before exceptional items rose 9% year-over-year to ₹2,731 crore; reported PAT declined 2% due to a one-off tax credit in the prior year.

Financial highlights

• Revenue grew 10% year-over-year to ₹17,184 crore, underpinned by 5% underlying volume growth (UVG).

• EBITDA margin at 23.0%, with EBITDA of ₹3,947 crore, up 8% YoY.

• Profit after tax (PAT) before exceptionals at ₹2,731 crore, up 9% YoY; reported PAT down 2% YoY due to prior year one-off tax credit.

• Adjusted PAT grew 11% YoY, excluding the one-off tax credit in the base period.

• A&P spend increased sequentially to ₹1,657 crore, highest in 11 quarters.

Outlook and guidance

• Expect FY27 to outperform FY26, with continued stability in FMCG demand and resilience in the Indian economy.

• EBITDA margin expected to remain around current guided range, despite elevated commodity and currency volatility.

• Guidance is risk-adjusted, factoring in macroeconomic and portfolio risks.

• Focus remains on driving competitive, volume-led revenue growth anchored to key priorities.