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Profit before exceptional items and tax increased 9.29% to Rs 3,707 crore in Q1 FY27, compared with Rs 3,392 crore in Q1 FY26. During the quarter, the company reported exceptional items of Rs 75 crore, comprising restructuring expenses of Rs 115 crore, partially offset by a profit of Rs 45 crore from the disposal of surplus assets, along with acquisition and disposal-related costs of Rs 5 crore.
EBITDA grew 8% YoY to Rs 3,947 crore, while the EBITDA margin declined 40 basis points YoY to 23.0%, remaining within the company's guided range of 22.5%'23.5% despite a volatile operating environment.
During the quarter, underlying sales growth (USG) stood at 10%, while underlying volume growth (UVG) was 5%.
Home Care delivered 14% USG, driven by high-single digit UVG. Household Care posted double-digit growth in both sales and volumes, while Vim Liquids continued to register strong double-digit growth supported by penetration initiatives.
Beauty & Wellbeing recorded 12% USG, driven by high-single digit UVG. Hair Care delivered double-digit growth, driven by premium products and future-format offerings, while Minimalist continued to post double-digit growth with improving momentum.
Personal Care reported 4% USG led by pricing, as palm oil inflation persisted for the second consecutive year. Skin Cleansing posted mid-single digit USG, led by Premium Bars delivering competitive double-digit, volume-led growth. Oral Care reported mid-single digit growth, aided by premium innovations in Closeup White Now, Pepsodent Gum Care and Sensitive Care continuing to gain traction.
Foods delivered 7% USG, driven by mid-single digit UVG. Premium Tea reported low-single digit UVG. Coffee posted double-digit volume-led growth, while Boost crossed the Rs 1,000 crore annual turnover milestone. Horlicks Superfoods and ready-to-drink offerings also continued to witness healthy traction.
Commenting on its medium-term outlook, the company said it will continue to monitor the progress of the monsoon and geopolitical developments, although it expects the underlying economy to remain resilient. HUL expects FY27 to outperform FY26, supported by portfolio and channel transformation initiatives. However, it cautioned that commodity price volatility and inflationary pressures are likely to persist in the near term, while consolidated EBITDA margin is expected to remain around the current guided range.
Priya Nair, CEO and managing director, commented: 'Despite global geopolitical volatility, the Indian economy demonstrated resilience, supported by proactive fiscal and monetary policy measures. The underlying demand environment remained stable during the quarter. Against this backdrop, HUL delivered turnover of Rs 17,184 crore and 10% USG, driven equally by volume and price. This marks our highest growth in thirteen quarters. The performance reflects the strength of our brands, increasing competitiveness of our portfolio, and disciplined execution of our strategic priorities.
As our investments in market development, channel expansion and portfolio transformation continue to scale, we are building a stronger, future-fit business. While we continue to navigate the short-term dynamic environment, we remain focused on driving volume-led revenue growth.'
Hindustan Unilever is in the FMCG business, comprising primarily Home Care, Beauty & Personal Care, and Foods & Refreshment segments. The company has manufacturing facilities across the country and sells primarily in India.
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