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HUL's consolidated revenues reported 10.1% YoY growth in revenues to Rs.17431cr

ICICIdirect Research 29 Jul 2026 DISCLAIMER

News: HUL's consolidated revenues reported 10.1% YoY growth in revenues to Rs.17431cr. Growth was aided by mix of Volume and price led growth of 5% each. Volume growth witnessed slight moderation from 6% inQ4FY26 to 5% in Q1FY27 due to decline in the sales volume of the soaps category and lower sales volume in the branded tea category. Home care and Beauty & Well-being categories registered double digit revenue growth driven by high single volume growth. Inflated palm oil prices and crude derivatives led to 79bps YoY in the gross margins to 49.5%. EBIDTA margins decreased by 34bps YoY to 22.8% (stood at lower end of the guided range). Operating profit grew by 8.4% YoY to Rs3,947cr and the adjusted PAT grew by 9.3% YoY to Rs2,731cr.

View: HUL’s Q1FY27 performance was missed the street estimates with mid-single digit volume growth and lower than expected EBIDTA margins at 22.8%. Demand environment in the rural and urban market stable and management expects it to remain stable in the coming quarters. Raw material inflation stood at 10% in Q1FY27 and if it remains inflated in the coming quarters, the company might resort for further price hike. Management maintains its guidance of EBIDTA margins remaining in the range of 22.5-23.5%. Revenue growth in FY27 will remain ahead of FY26 growth driven by strategic actions.  Stock has already corrected by 8% post the below par performance.

Impact: Neutral

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