HUL's Q1 ad expenses down 5%

FMCG giant Hindustan Unilever Ltd (HUL) on Thursday announced its financial results for the first quarter of the financial year 2026, delivering a steady performance despite a mixed demand environment. The company reported a 7.6% year-on-year (YoY) increase in standalone net profit, which rose to ₹2,732 crore from ₹2,538 crore in the same quarter of the previous year. HUL's ad expenses declined by ~5.5% year-on-year from Rs 6,380 crore to Rs 6,028 crore.

The company’s revenue from operations for the quarter ended June 2025 came in at ₹15,747 crore, reflecting a 3.8% growth over ₹15,166 crore in the corresponding quarter of FY25. HUL, which houses a portfolio of leading brands such as Dove, Surf Excel, Pond’s, and Brooke Bond, attributed the growth to a combination of volume expansion and a gradual recovery in demand across categories.

Total expenses for the June quarter stood at ₹12,807 crore, marking a 5.7% increase compared to ₹12,116 crore in the same period last year. This rise reflects the company’s stepped-up investments to support its growth ambitions and portfolio transformation strategy.

From a segmental perspective, performance trends varied across categories:

• Home Care revenues rose 2% YoY to ₹5,783 crore, compared with ₹5,675 crore in Q1 FY25, driven by resilient demand in fabric care and household cleaning products.
• Beauty & Wellbeing delivered stronger momentum, posting a 4.7% growth in revenue to ₹3,349 crore, supported by premium skincare and haircare offerings.
• Foods continued to expand steadily, with turnover increasing 4.3% to ₹4,016 crore, aided by strong tea and culinary portfolio performance.

Commenting on the quarterly performance, Rohit Jawa, CEO & Managing Director of HUL, said the FMCG demand environment remained stable during the quarter, with a gradual uptick in recent months. “Encouraged by favourable macro-economic indicators, we strategically stepped up our investments to effectively advance our portfolio transformation agenda in this quarter,” Jawa noted.

The company’s growth was broad-based across its business lines. At the consolidated level, underlying sales growth (USG) stood at 5%, supported by an underlying volume growth (UVG) of 4%. On a standalone basis, HUL delivered 4% USG and 3% UVG for the quarter, while profit after tax advanced 8% YoY.

HUL’s EBITDA margin for the June quarter came in at 22.8%, lower by 130 basis points compared to the year-ago period. This contraction, the company said, was in line with guidance and largely a result of increased investments aimed at driving sustainable business growth and supporting brand building.

Investors reacted positively to the earnings announcement. Shares of Hindustan Unilever rose 3.7% on the BSE, closing at ₹2,527 on Thursday, reflecting optimism around the company’s long-term growth outlook despite near-term margin pressures.