HUL Q1 FY27 Results: Revenue Hits 13-Quarter High Despite 3% Decline in Profit

HUL Q1 FY27 Results: Revenue Hits 13-Quarter High Despite 3% Decline in Profit

Hindustan Unilever Limited (HUL), India's largest FMCG company, announced its Q1 FY27 financial results on 28 July 2026, reporting its strongest underlying sales growth in more than three years. While consolidated net profit declined modestly, the company delivered healthy revenue growth driven by broad-based demand, volume expansion, and continued strength across its product portfolio.

The quarter reflected resilient consumer demand despite a slightly lower operating margin and higher restructuring expenses.

Q1 FY27 Financial Highlights

Net Profit (PAT)

• ₹2,673 crore

• Down 3% YoY

• Down 10.7% QoQ

HUL's consolidated net profit declined from ₹2,756 crore in Q1 FY26 and ₹2,992 crore in Q4 FY26.

Revenue from Product Sales

• ₹17,149 crore

• Up 10.3% YoY

• Up 6% QoQ

Revenue growth remained one of the biggest highlights of the quarter, supported by healthy consumer demand and strong volume-led growth.

EBITDA

• ₹3,947 crore

• Up 8% YoY

EBITDA Margin

• 23.0%

• Down 40 basis points YoY

Although operating profit improved, EBITDA margins contracted slightly due to higher operating costs while remaining within the company's guided range.

Highest Growth in 13 Quarters

HUL reported its strongest quarterly underlying sales growth in the last 13 quarters.

Key Highlights

• Underlying Sales Growth (USG): 10%

• Turnover: ₹17,184 crore

• Highest quarterly growth in over three years

The company attributed the performance to healthy consumer demand, product innovation, and disciplined market execution.

Home Care Segment Drives Growth

The Home Care business emerged as the strongest-performing segment during the quarter.

Segment Highlights

• Underlying Sales Growth (USG): 14%

• High single-digit volume growth

• Highest growth in the last three years

• Double-digit growth in Fabric Wash

• Strong Household Care performance

• Continued momentum in Liquid Detergents

According to the company, disciplined market development and consumer-centric innovations helped strengthen its market leadership while maintaining healthy volume growth.

Exceptional Items

During the quarter, HUL reported

• Restructuring Expenses: ₹115 crore

Compared with

• ₹90 crore in Q1 FY26.

The higher restructuring costs weighed on overall profitability during the quarter.

Key Positives

• Revenue increased 10.3% YoY

• Highest underlying sales growth in 13 quarters

• Home Care business delivered strong double-digit growth

• EBITDA increased 8% YoY

• Healthy volume-led growth across categories

• Continued market leadership in the FMCG sector

Key Risks

Investors should continue monitoring

• Margin pressure

• Rising operating costs

• Higher restructuring expenses

• Raw material inflation

• Competitive pricing environment

What Investors Should Watch

Key factors to monitor over the coming quarters include

• Revenue growth

• Underlying volume growth

• EBITDA margin recovery

• Raw material and input cost trends

• Rural and urban consumption demand

• Management guidance

• Profitability and margin expansion

These factors will play a key role in determining HUL's earnings trajectory during FY27.

Final Thoughts

Hindustan Unilever delivered a healthy operational performance in Q1 FY27, reporting its strongest sales growth in more than three years despite a modest decline in net profit. Strong revenue growth, healthy volume expansion, and continued strength in the Home Care segment highlight the resilience of the company's business model.

While profitability was impacted by restructuring expenses and margin pressure, HUL remains well-positioned with its diversified brand portfolio and strong market leadership. Investors will closely monitor margin recovery, input cost trends, and management commentary in the coming quarters.

Question for Investors

Do you believe HUL can continue delivering strong earnings growth during FY27?

• Yes — Strong demand and brand leadership support future growth.

• No — Margin pressure and rising competition may impact profitability.

Share your views in the comments.

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Disclaimer

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