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Informist, Thursday, Oct. 23, 2025

 

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--HUL Jul-Sept net profit INR 26.90 bln
--Analysts saw HUL Jul-Sept net profit at INR 24.77 bln
--HUL Jul-Sept net profit INR 26.90 bln vs INR 26.12 bln year ago
--HUL to pay INR 19 per share interim dividend
--HUL interim dividend record date is Nov 7
--Analysts saw HUL Jul-Sept revenue at INR 158.43 bln
--HUL Jul-Sept revenue INR 155.85 bln
--HUL Jul-Sept revenue INR 155.85 bln vs INR 155.08 bln year ago
--HUL Apr-Sept net profit INR 54.22 bln vs INR 51.50 bln year ago
--HUL Apr-Sept revenue INR 315.16 bln vs INR 308.47 bln year ago
--HUL Jul-Sept net profit includes one-time income INR 1.84 bln
--HUL Jul-Sept advt, promotion expenses INR 15.27 bln vs INR 14.64 bln yr ago
--HUL Jul-Sept EBITDA INR 35.63 bln vs INR 36.47 bln year ago
--HUL Jul-Sept EBITDA margin 23.1%, down 70 bps on year
--HUL Jul-Sept home care revenue INR 56.67 bln vs INR 57.37 bln year ago
--HUL Jul-Sept beauty, well-being revenue INR 33.89 bln vs INR 33.23 bln
--HUL Jul-Sept personal care revenue INR 24.26 bln vs INR 24.12 bln yr ago
--HUL Jul-Sept food revenue INR 38.69 bln vs INR 38.03 bln year ago
--HUL Jul-Sept underlying volume growth flat on year
--HUL Jul-Sept underlying sales growth 2% on year
--HUL: Q2 home care consol underlying volume grew in mid single digit
--HUL: Q2 beauty, well-being consol underlying sales grew 5%
--HUL: Hair care business continued to strengthen market leadership in Q2
--HUL: Hair care ops turnover dn on yr on transitory impact of GST rate cuts
--HUL: Q2 personal care consol turnover growth flat on GST rate cuts
--HUL:Expect normal trading conditions from early Nov once prices stabilise
--HUL: EBITDA margin expected to remain at current levels
--HUL: Expect second half of FY26 to be better than first half
--HUL: Expect price growth in low single digit if commodity prices steady
--HUL: Q2 food consol underlying sales up 3%, volume up in low single digit
 

 

By Rajesh Gajra

 

NEW DELHI - Hindustan Unilever Ltd. reported flat underlying volume growth on year for the September quarter, much below the 3% growth it had posted in the year-ago quarter and also below the 4% growth reported in the trailing quarter. The company reported underlying sales growth of 2% on year in the latest quarter, below the 3% growth in the year-ago quarter and the 5% growth in the trailing quarter.

 

The company reported an increase of 3% on year in its net profit for the September quarter at INR 26.9 billion, above analysts' estimate of INR 24.8 billion. The net profit included a one-time income of INR 1.84 billion. The company posted on-year growth of 0.5% in revenue from operations at INR 155.9 billion, below the Street's estimate of INR 158.4 billion.

 

Hindustan Unilever's earnings before interest, depreciation, and amortisation for the September quarter declined 2.3% on year to INR 35.6 billion amid low revenue growth and a 4.3% jump in advertising and promotion expenses at INR 15.3 billion. The company reported an EBITDA margin of 23.1%, down 70 basis points from 23.8% in the year-ago quarter. The company's EBITDA margin had increased 20 basis points on year in the year-ago quarter.

 

On a consolidated basis, the company's EBITDA margin contracted 90 basis points on year to 23.2% in the September quarter. The consolidated gross margin in the latest quarter was 50.9%, down 10 basis points on year. The company said advertising and promotion expense was 10.3% of the sales turnover, and was up 80 basis points on year.

 

SEGMENTAL PERFORMANCE

The home care segment of Hindustan Unilever recorded revenue of INR 56.6 billion for the September quarter, lower than INR 57.4 billion in the year-ago quarter. This segment recorded mid-single digit growth on year in underlying volume, but the underlying sales growth was flat, indicating the effect of price cuts. The home care segment margin was 19% in the September quarter, the same as that in the year-ago quarter.

 

In its beauty and wellbeing segment, the company reported a marginal increase in revenue at INR 33.9 billion, against INR 33.2 billion in the year-ago quarter. The underlying volume growth was flat, while the underlying sales growth was 5%, according to the company. The segment margin was 28%, lower than 34% in the year-ago quarter.

 

The foods and refreshment segment of the company saw revenue increase to INR 38.7 billion from INR 38 billion, aided by double-digit growth momentum in beverages. The underlying volume growth was in low single digit, while the underlying sales growth was 3%. The segment margin was 16% in the September quarter, lower than 18% in the same quarter last year.

 

The company reported a marginal increase in revenue in its personal care segment at INR 24.3 billion, against INR 24.1 billion. The underlying volume declined in high single digit, while the underlying sales growth was flat. 

 

Within the personal care segment, the hair care sub-segment "continued to strengthen its market leadership in the quarter," the company said. The sales turnover in this sub-segment declined on year "due to transitory impact of GST (goods and services tax) rate rationalisation during the quarter," it said.

 

The company said its overall earnings performance for the September quarter "reflected a transitory impact of GST changes and prolonged monsoon conditions in parts of the country." It said the net profit growth during the quarter was "primarily driven by one-off positive impact pursuant to resolution of prior years' tax matters between UK and Indian tax authorities."

 

The company said GST-related disruption continues into October, but expects the second half of 2025-26 (Apr-Mar) to be better than the first. The company expects the EBITDA margin to remain at current levels, and expects price growth in low single digit only if commodity prices remain steady. The company also expects normal trading conditions from early November, once prices stabilise.

 

For Apr-Sept, Hindustan Unilever's net profit increased 5.3% on year to INR 54.2 billion and revenue from operations rose 2.2% to INR 315.2 billion. On Thursday, the company's board approved interim dividend of INR 19 per share, for which the record date is Nov. 7.

 

At 1226 IST, shares of the company were at INR 2,641.80, up 1.9%, on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Avishek Dutta

 

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