HUL shares slide over 6% after weaker-than-expected Q1; PAT dips 3% to Rs 2,673 crore on one-time credit
Hindustan Unilever (HUL) shares fell over 6% following a first-quarter earnings report that missed analyst expectations due to a one-time tax credit. Despite the profit dip, the company saw a 10.2% increase in revenue and strong growth across its Home Care and Beauty segments.
Why it matters
As a major FMCG player in India, HUL's performance is a key barometer for consumer spending trends and economic health in the region.
Shares of FMCG major Hindustan Unilever (HUL) declined over 6% to Rs 2,034 on the NSE on Tuesday after the company’s first quarter earnings missed analyst estimates.The company reported a 3% year-on-year decline in net profit to Rs 2,673 crore for the first quarter of FY27. The company said the decline in PAT resulted from a one-off tax credit in the previous quarter.Revenue from operations, however, rose 10.2% year-on-year to Rs 17,149 crore in Q1 FY27, compared with Rs 15,552 crore reported in the corresponding quarter of the previous financial year.HUL reported an underlying sales growth (USG) of 10%, driven equally by volume and price, marking the company's highest growth in thirteen quarters.EBITDA for the quarter stood at Rs 3,947 crore, up 8% from Rs 3,640 crore in the year-ago quarter.
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