Hindustan Unilever Q1 Preview: Analysts Predict Subdued Growth With Flat Ebitda Over FY26

Hindustan Unilever Ltd. is set to announce its financial results for the January–March quarter on Friday. While analysts expect a slight bounce back, the FMCG giant will likely see subdued growth, with a possible margin contraction.

Overall revenue growth for the FMCG universe is expected to be in the low single digits, primarily driven by volume growth rather than price hikes. This muted performance is attributed to continued stress in urban demand.

Rural demand, however, has continued to see an uptick and will likely experience stronger momentum, supported by favourable weather patterns and expectations of a good monsoon. This rural resilience is a key positive for the sector.

HUL Q1 Results Preview (Bloomberg Estimates)

• Revenue seen 2.4% up at Rs 16,076 crore versus Rs 15,707 crore

• Ebitda seen at Rs 3,653 crore versus 3,744 crore

• Ebitda margin seen at 22.7% versus 17.91%

• Net Profit seen at Rs 2,608 crore Rs 2,443 crore

Here is what analysts are expecting from HUL in its Q1 results:

Investec | Stock Rating: Hold | Price Target: Rs 2,538

• Expects Ebitda margin to either contract or remain flat

• Expects revenue to grow 4.0%

• Expects Net Profit to decline 1%

Nirmal Bang | Stock Rating: Hold | Price Target: Rs 2,420

• Expects HUL to see subdued growth

• Expects year-on-year revenue growth of 3.6%

• Expects volume growth of 2% YoY

• Expects margin to contract

 Jefferies | Stock Rating: Buy| Price Target: Rs 2,950

• Sees revenue growth to be a mix of 2% Underlying Volume Growth and 1% Underlying Price Growth due to product price hikes in tea/soaps

• Expects Ebitda to remain flat YoY

• Sees gross margins to contract 1.2% or 120 bps

Nuvama | Stock Rating: Buy| Price Target: Rs 3,055

• Expects consolidated revenue to increase 4.3% YoY

• Underlying consolidated volumes are likely to grow 3-4% YoY

• Expects consolidated Ebitda to decrease 1.4%

HSBC | Stock Rating: Hold| Price Target: Rs 2,290

• Expects volume growth of 3% in Q1 reflecting underlying demand weakness, but expects that to improve gradually over second half of FY26

• Expects revenue growth of 4%

• Expects Ebitda margins to stay within 22-23%