Hind. Unilever Q1 FY27 Results (NSE: HINDUNILVR)
Signal: Steady quarter
The read
HUL delivered its strongest quarterly revenue growth in 13 quarters at +10%, led by a Home Care surge of 14% USG, but EBITDA margin contracted 40bps YoY to 23% as input cost and A&P spend pressures persisted – the margin is at the lower end of the guided range. Reported PAT fell 2% entirely due to a one-off tax credit in the base year; underlying PAT grew 9% in line with operating profit. The growth acceleration is a clear positive inflection after a prolonged sub-2% revenue growth phase, but the margin squeeze signals that competitive intensity and reinvestment needs remain high. Investors should watch for margin stabilization before calling a sustained earnings upgrade cycle.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹17,149 Cr | 10% | 10% (vs ₹15,552 Cr Q4FY26) |
| EBIT | ₹3,599 Cr | 9% | |
| Net profit | ₹2,680 Cr | -2% | |
| EPS | ₹12.73 | 8.5% | |
| EBIT margin | 23.0% |
P&L walk
Revenue growth accelerated to 10% YoY (highest in 13 quarters), driven by 14% USG in Home Care; EBITDA margin contracted 40bps to 23.0% as A&P and other opex rose faster than revenue; PAT before exceptional items grew 9%, but reported PAT fell 2% due to a one-off tax credit in the base quarter.
Segments
Home Care was the star performer with 14% USG (highest in 3 years), contributing ₹6,344 Cr revenue (+10% segment revenue) and ₹1,209 Cr segment result (+7% YoY); Beauty & Wellbeing grew 10% segment revenue to ₹3,697 Cr with ₹1,076 Cr result (+10%); Personal Care revenue flat at ₹2,229 Cr but result dropped 12% to ₹417 Cr, a relative laggard; Foods revenue +9% to ₹3,566 Cr with ₹721 Cr result (+18% YoY), a margin improver.
Key positives
- Revenue growth accelerated to 10% YoY, the highest in 13 quarters, breaking a prolonged low-growth phase
- Home Care delivered 14% USG, the highest in three years, with market leadership strengthening
- Underlying PAT before exceptional items grew 9% to ₹2,731 Cr, tracking operating profit growth
- All segments except Personal Care posted double-digit revenue growth; Foods improved margins (+18% segment result on +9% revenue)
Key concerns
- EBITDA margin contracted 40bps YoY to 23.0%, at the lower boundary of the guided range, as A&P spend and other costs outpaced revenue growth
- Personal Care segment revenue flat YoY and segment result down 12%, a drag on overall profitability
- Reported PAT declined 2% due to a one-off tax credit in the base quarter – headline earnings misleading relative to underlying trend
- Input cost pressure (RM-to-sales ratio elevated) could persist if commodity prices remain volatile
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