According to reports from Reuters, Hindustan Unilever Ltd delivered robust fourth-quarter results with profit rising 18% to ₹29.30 billion ($307.57 million) for the quarter ended March 31. The domestic unit of UK's Unilever also reported revenue growth of 7% to ₹155.99 billion, supported by its home-care business which saw revenue increase 9%. The strong performance was aided by consumption tax cuts during the quarter.
As reported by The Economic Times, Hindustan Unilever achieved volume growth of about 6% in the March quarter, returning to levels last seen in June 2023. However, the stock ended 2.7% lower at ₹2,250.6 on the BSE as investors expressed concerns about the company's decision to raise product prices by 2-5% to partially cover higher input costs. The stock reversed course to trade nearly 3% lower after the results, making it the third-biggest loser on the benchmark Nifty 50 index.
According to The Economic Times, material costs rose to 32.9% of revenue in FY26 compared with 31.4% in FY25, underscoring pressure from crude-linked inputs. The company is implementing calibrated price increases to protect volumes, believing its core portfolio has relatively low-price elasticity which may limit the impact of higher prices on sales volume. CEO and managing director Priya Nair stated that the company is balancing price increases, cost savings and advertising spending to offset short-term impacts from heightened geopolitical tensions.
As reported by The Economic Times, Hindustan Unilever has planned ₹2,000-crore capital expenditure spread over the next few quarters, focused largely on beauty, personal care and home care segments. The company's premium thrust is visible in beauty, where its digital-first brand Minimalist scaled up to annual revenue of about ₹850 crore, up from around ₹500 crore last year. The company expects fiscal 2027 performance to be better than the recently concluded financial year, as it sharpens its focus on premium products and doubles down on 'fewer, bigger bets' including its Horlicks protein drink.
According to The Economic Times, the company has retained its FY27 Ebitda margin guidance at 22.5-23.5% after reporting 23.6% margin in FY26. However, it would be a difficult task to maintain the margin in a tight band as the company has flagged input cost inflation of 8-10% amid the West Asian conflict, which has resulted in over 73% jump in Brent crude prices over the past four months. The company anticipates continued execution buoyancy in FY27 supported by premiumization and improving traction in quick commerce where turnover doubled in FY26.
