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%
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