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Hindustan Unilever – operating performance in-line; volume growth beat expectation

ICICIdirect Research 30 Apr 2026 DISCLAIMER

HUL revenue growth improved sequentially to 7.6% YoY to Rs163.5bn driven by 6% volume growth ahead (ahead of our street expectation of 4-5%).
Gross margins decreased by 97bps YoY to 50.3%. Stringent cost management aided EBIDTA margins to remain almost stable on YoY basis to 23.5% (ahead of management guidance of 22-23%).
EBIDTA grew by 6% to Rs3841 crore and adj. PAT grew by 3.6% YoY to Rs2,711cr (ahead of our expectation of Rs2,611.5cr and street expectation -Rs2,660cr).
View: Q4FY26 operational numbers are good. However surging crude prices and palm oil prices will put stress on the margins. Management has indicated of several initiatives including cost saving measures, increase in local supply and efficient buying. How much will it help to mitigate the raw inflation pressure is something to monitorable in the near term. We have a Hold rating on the stock

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