Hindustan Unilever (HINDUNILVR) Q1 25/26 earnings summary

Executive summary

• Consolidated turnover reached INR 16,323 crore, with 5% underlying sales growth and 4% underlying volume growth for the quarter ended June 2025.

• EBITDA margin was 22.8%, down 130 bps year-over-year, reflecting increased investments and gross margin pressure.

• Reported profit after tax (PAT) rose 6% to INR 2,768 crore, aided by a favorable tax provision adjustment; PAT before exceptional items declined 5%.

• Portfolio transformation and premiumisation accelerated, with future core and market maker segments now over 50% of the portfolio.

• Leadership transition announced: Priya Nair appointed CEO and Managing Director, succeeding Rohit Jawa.

Financial highlights

• Gross margin stood at 49.5%, down 190 bps year-over-year, due to price-cost gap and strategic pricing actions.

• Standalone USG was 4% and UVG 3%, with standalone EBITDA margin at 22.6% (down 120 bps YoY).

• Effective tax rate for the quarter was 16.2% after tax adjustments; excluding this, it was 26.4%.

• EPS grew 6% year-over-year; consolidated EPS at Rs. 11.73, standalone EPS at Rs. 11.63.

• Advertising and promotion spend at 10.1% of turnover, up 40 bps sequentially.

Outlook and guidance

• Growth guidance unchanged: first half of FY26 expected to outperform the second half of FY25.

• If commodity prices remain stable, low single-digit price growth is anticipated.

• EBITDA margin expected to remain in the 22%-23% range.

• Focus remains on sequential gross margin improvement, portfolio transformation, and investment in high-growth channels.

• Emphasis on competitive, volume-led growth.