loader2
Login Open ICICI 3-in-1 Account

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

FMCG biggies Q1FY26 performance largely replicates Q4FY25 with low single digit volume growth

ICICIdirect Research 01 Aug 2025 DISCLAIMER

Key industry highlights
Marginal sequential improvement in the volume growth in the range of 1-2%.
Gross margins continue to remain under pressure due to higher input prices.
Revenues grew in mid-single digit while operating profit stood flat or marginally decline on the y-o-y basis.


Hindustan Unilever
HUL’s standalone revenues grew by 3.9%yoy to Rs15,931crore; standalone volume growth of 3% in Q1FY26 vs. 2% achieved in Q4FY25.
Gap between raw material inflation and price hikes and unfavourable mix led to 228bps yoy decline in the gross margins to 49.2%. Cut on ad-spends arrested significant decline in OPM to 113bps yoy to 22.3%.
EBIDTA stood flat, while the adjusted PAT decreased by 3%yoy to Rs2,490.
Outlook: Focus on accelerating growth, gross margins to improve sequentially, OPM to remain in the range of 22-23%.
View: Earnings to grow at 8% over FY2023-25%; acceleration in growth under new leadership is monitorable; Maintain Hold with price target of Rs2,625.
 
Asian Paints 
Consolidated revenues stood flat at Rs.8,938.6 crore. Decorative paint business registered a volume growth of 3.9% improved from 1.8% in Q4FY25.
Revenues decline by 1.2%yoy to Rs8,938.6crore due to realisation dip of 5% affect by downtrading to low price products and discounts available to the customers.
Gross margins stood flat at 42.7%, EBIDTA margins decreased by 70bps to 18.2% due to higher media spends.
EBIDTA decreased by 5%yoy to Rs1,520crore; Adjusted PAT decreased by 7.5% yoy to Rs1,099.6crore.
Outlook: Decorative paints volume growth to remain in single digit over the next two to three quarters, competitive intensity remains high, management maintain EBIDTA margin guidance of 18-20% (likely to remain at lower end of the band).
View: Competitive intensity will put toll on margins in the near term and limits the earnings growth; Maintain Hold with a price target of Rs2,475
 
Dabur India
Consolidated revenues grew by 1.7% y-o-y to Rs. 3,405 crore impacted by unseasonal rains Excluding this seasonal portfolio, the business grew by 4% in Q1. Overall volume decreased by 1% while excluding season products volumes grew by 3%.
Gross margins fell by 75 bps y-o-y to 47%, while EBIDTA margins stood flat at 19.6% aided by lower advertisement spends.
EBIDTA grew by 2% y-o-y to Rs. 668 crore and adjusted PAT increased by 2.9% y-o-y to Rs. 509 crore.
Outlook: Management maintained its stance of achieving double-digit revenue growth for coming quarters (partly aided by low base) and maintaining profitability on stable commodity prices.

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere