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Hindustan Unilever Shares Tumble Nearly 6% Despite Revenue Growth in Q1 FY27

Hindustan Unilever's Q1 FY27 profit fell 3% to Rs 2,673 crore, even as revenue grew 10.1%. Shares tumbled almost 6% on the NSE, as investors reacted sharply to the earnings miss.

Written By : Simran Mishra
Reviewed By : Manisha Sharma

Overview 

  • HUL's consolidated net profit slipped 3% to Rs 2,673 crore in Q1 FY27. 

  • Revenue rose 10.1% to Rs 17,341 crore on strong volume growth. 

  • Shares fell nearly 6% as the profit miss overshadowed healthy sales momentum.

Hindustan Unilever opened FY27 with sharply mixed signals for investors. Sales grew at its fastest pace in several quarters, but profit growth failed to keep up.

Shares of India's largest consumer goods maker fell sharply after the Q1 results. While sharp stock reactions like this are common in the FMCG sector, a profit miss often outweighs strong top-line growth in the short term.

Stock Tumbles Nearly 6% After the Results

Hindustan Unilever shares (HINDUNILVR) were trading at Rs. 2,045.80 on the NSE. According to TradingView, the stock was down close to 5.92% during the session on July 28, 2026.

HUL Stock Session Details

ParticularsValue
Current Share PriceRs. 2,045.80
Open PriceRs. 2,174.60
Day HighRs. 2,213.00
Day LowRs. 2,034.20
Previous CloseRs. 2,174.60
Volume Traded73,35,294 shares
52-Week High / LowRs. 2,705.09 / Rs. 2,022.50

The stock briefly touched its 52-week low zone during the session. Trading volumes surged well above recent averages. This points to heavy selling pressure right after the earnings release.

Profit Falls on a Tough Base and Higher Costs

Consolidated net profit fell 3% year-on-year to Rs. 2,673 crore. It stood at Rs 2,756 crore in the same quarter last year. Rising input costs weighed on the bottom line this quarter.

EBITDA Margin Holds Within Guided Range

EBITDA rose 8.4% to Rs. 3,947 crore, up from Rs. 3,640 crore. The EBITDA margin stayed at 23%. This remained within the range management had earlier guided for FY27.

Revenue Growth Stays Strong Across Categories

Revenue from operations grew 10.1% to Rs. 17,341 crore this quarter. Underlying volume growth came in at 5%, a healthy pace for the sector. Pricing and volume both contributed equally to this growth.

Home care was the clear standout this quarter. Its revenue rose 13.4% to Rs. 6,554 crore. Underlying sales growth of 14% marked its best show in three years.

Segment-Wise Revenue Performance in Q1 FY2

SegmentRevenue (Rs. Crore)Growth YoY
Home Care6,55413.40%
Beauty & Wellbeing4,08312.40%
Foods3,4806.80%
Personal Care2,6243.30%

Beauty and wellbeing revenue grew 12.4% to Rs. 4,083 crore this quarter. Premium skin care and hair care posted double-digit growth, while foods revenue rose 6.8% to Rs. 3,480 crore on steady demand for staples.

Personal care stayed the weakest link again this quarter. Revenue rose just 3.3% to Rs. 2,624 crore. Pricing drove most of the gain, while volumes slipped slightly.

Leadership Stays Focused on Volume-Led Growth

CEO Priya Nair called the quarter resilient despite a volatile external backdrop. She pointed to ongoing investments in market development and portfolio transformation. These, she said, are building a stronger, future-ready business.

Nair added that the near-term focus stays on volume-led revenue growth. Investments in channel expansion and premium products should support performance ahead. Management gave no signal of a near-term change in strategy.

Market Outlook

HUL's revenue strength points to healthy consumer demand across most categories. The sharp stock fall appears tied more to sentiment than fundamentals. Investors should watch margin trends and personal care recovery in coming quarters.

Also Read: HUL vs ITC: Which FMCG Giant Offers Better Long-Term Investment Potential?

Final Words

Hindustan Unilever delivered strong sales growth this quarter, even as profit growth disappointed the Street. Home care and beauty segments both posted their best show in years. This points to a business still gaining consumer traction.

The sharp stock reaction looks driven by short-term market sentiment rather than any deeper weakness. As costs ease and personal care regains pace, Hindustan Unilever's scale should keep supporting its long-term standing in India's consumer goods space.

FAQs 

Why did Hindustan Unilever shares fall nearly 6%? 

Investors reacted sharply to the 3% profit decline during the quarter. This overshadowed strong revenue growth and steady margins, triggering heavy selling pressure and pushing the stock near its 52-week low during the session.

What was HUL's net profit in Q1 FY27? 

Hindustan Unilever reported a consolidated net profit of Rs 2,673 crore for the quarter, down 3% from Rs 2,756 crore a year earlier. Rising input costs and a tough base drove the decline this time.

Which segment performed best for HUL in Q1 FY27? 

Home care led all segments, with revenue rising 13.4% to Rs 6,554 crore. Underlying sales growth of 14% marked its strongest show in three years, led by fabric wash and household care demand.

What is HUL's current EBITDA margin? 

HUL's EBITDA margin held at 23% in Q1 FY27, staying within the company's guided range for the year. This came despite rising input costs and continued brand and distribution investments across categories.

How has HUL's stock performed over the past year? 

Hindustan Unilever shares have declined sharply over the past year, trading well below their 52-week high of Rs 2,705.09. Margin pressure, mixed segment growth, and Tuesday's profit miss have all weighed on investor sentiment.

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