Hindustan Unilever (HUL) will take more price hikes in the coming months as volatile commodity costs, driven by shaky peace prospects in West Asia, keep inflation elevated, the consumer goods giant said Tuesday. The maker of Dove shampoos and Knorr soups reported a 10% revenue increase in the June quarter to Rs 17,341 crore, pushing growth to a 13-quarter high, even as net profit slipped 3.2% to Rs 2,680 crore due to a one-off tax credit in the year-ago period. The company's stock fell nearly 7%—the biggest one-day drop since March 2020—weighing on investor sentiment.
Financial Performance in Q1FY27
The company's underlying volume growth (UVG) stood at 5%, while underlying sales growth (USG) reached 10%, driven equally by volume and price. HUL took a 5% price hike in the June quarter. The key financial metrics are summarized below:
| Metric | Q1FY27 | Q1FY26 | Change |
|---|---|---|---|
| Revenue from operations (₹ crore) | 17,341 | ~15,764 | +10% |
| Net profit (₹ crore) | 2,680 | 2,768 | -3.2% |
| Underlying volume growth | 5% | — | — |
| Underlying sales growth | 10% | — | — |
| Stock price (BSE, ₹) | 2,023.1 | — | -7% (day) |
Note: Q1FY26 revenue not explicitly stated in source; derived from 10% growth.
Inflation and Commodity Cost Pressures
According to a Business Today report, HUL projects inflation in the range of 2–5% for the September quarter. War-led disruption of energy supplies has pushed up crude oil prices, which directly affect packaging and logistics costs. Crude derivatives are also used in manufacturing household products such as lotions, detergents, and dish-washing liquids. HUL remains watchful of El Niño's impact on monsoons, as agriculture accounts for about 15% of India's GDP. CEO Priya Nair noted that the overall monsoon impact could be 50–60 basis points on GDP, with the progression and geographical spread of rains being key.
Management Outlook and Strategy
“Overall, we see that the situation continues to remain volatile. Between Sept quarter versus June quarter, we see a sequential inflation, which could range between 2-5%. So, we will continue to take calibrated pricing into the quarter, depending on how inflation pans out,” said Priya Nair, MD & CEO of HUL, in a post-earnings briefing. Nair, who will complete a year at the corner office on August 1, emphasized that the company will chase volume-led revenue growth and that its wide portfolio spanning categories and price packs provides a shield against economic volatility. She maintained that FY27 will be better than FY26.
Market Reaction and Analyst Views
Despite strong revenue growth, HUL's stock ended lower at ₹2,023.10 on the BSE on Tuesday. Independent consultant Akshay Dsouza commented, “This growth has come at the cost of stressed margins year-on-year, especially in home care and personal care categories which has led to markets reacting negatively.” He added that the inflationary environment is leading to continued margin stress. The company acknowledged that growth came at the expense of margins, particularly in home and personal care.
The next milestone for investors will be HUL's Q2FY27 earnings report, expected in late October 2026, where the impact of further price hikes on volumes and margins will be closely watched.
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