The country’s largest consumer goods company, Hindustan Unilever (HUL), on Thursday beat March-quarter street estimates on both topline and bottomline as demand conditions remained stable during the period. But the management warned of near-term volatility triggered by the Iran war, saying that it would continue taking calibrated price hikes to mitigate input cost pressures.
One round of price hikes by HUL was taken recently to the tune of 2-5% in categories such as home care and personal care amid crude-linked volatility. Shares of HUL crashed 4.4% intra-day on the BSE on Thursday in response to its price hike plans, recovering towards the end of trade at Rs 2,250.60 apiece, down 2.7% versus the previous day’s close.
Navigating Geopolitical Headwinds
The company reported a 21.4% year-on-year rise in consolidated net profit to Rs 2,992 crore for the fiscal fourth quarter (Q4FY26), compared with Rs 2,464 crore seen a year ago. The reported profit includes gains from HUL’s 19.8% stake divestment in Nutritionalab, the parent company of Wellbeing Nutrition, in February, to UVS Pharma, for Rs 307 crore. Bloomberg consensus estimates had forecast Q4 consolidated net profit at Rs 2,612 crore.
The FMCG major’s consolidated revenue rose 7.6% year-on-year to Rs 16,351 crore in Q4 from Rs 15,190 crore reported last year, with volume growth coming in at 6%, highest in 15 quarters, and ahead of street estimates of 4-5%.
Bloomberg consensus estimates had pegged consolidated revenue at Rs 16,279 crore in Q4. Earnings before interest tax depreciation and amortisation (Ebitda) stood at Rs 3,841 crore against analysts’ estimates of Rs 3,754 crore for the period under review. Ebitda grew 6% versus last year, though Ebitda margins narrowed by 30 basis points to 23.5% from 23.8% reported a year ago. One basis point is one-hundredth of a percentage point.
“Heightened geopolitical tensions have led to commodity and currency volatility. We are navigating these headwinds through disciplined savings, the resilience of our global and local supply chain and calibrated pricing actions,” Priya Nair, CEO and Managing Director, HUL, said.
On a standalone basis, HUL reported Q4 revenue at Rs 15,733 crore, up 6.8% versus last year, while net profit stood at Rs 2,930 crore, up 17.5% compared to a year ago. And Ebitda rose 7.5% year-on-year to Rs 3,725 crore. For the full year, turnover was pegged at Rs. 63,763 crore, up 5% year-on-year, driven by 4% underlying volume growth (UVG).
The company’s board approved a final dividend of Rs 22 per share for FY26. HUL had earlier paid an interim dividend of Rs 19 per share, taking the total FY26 dividend to Rs 41 per share.
Segment Performance
HUL’s largest business segment, homecare, posted 9% sales growth in Q4, its highest growth in 11 quarters. The segment’s consolidated revenue was Rs 6,344 crore during the period.
Beauty & Wellbeing posted an 8% underlying sales growth (USG), driven by standout performance in hair care, HUL said, reporting revenue of Rs 3,697 crore, up from Rs 3,265 crore seen last year. Personal care grew USG 5% in the quarter ended March 31, powered by strong performance in the skin cleansing segment. Under foods, USG rose 5%, with revenue rising to Rs 3,566 crore from Rs 3,416 crore reported in Q4 last year.