Hindustan Unilever Ltd (HINDUNILVR) Q1 FY27 Results Analysis: Revenue Surges 10.1%, PAT Grows 9.3%

Hindustan Unilever Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 17,341.00 Cr (+10.10% YoY) and PAT growth of -2.20% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

HUL delivered 10.1% revenue growth, the highest in 13 quarters, with a 5% volume growth and normalized PAT up 9.3%. EBITDA margin landed at 23.0%, within the guided band, while cost management kept input cost growth well below revenue. The quarter was inline with guidance, with no major surprises, but the strong underlying momentum and premiumisation tailwinds support a positive near-term outlook.

Key Investment Insights

Key Positives

• Revenue grew 10.1% YoY to Rs.17,341 cr, highest in 13 quarters
• Underlying volume growth of 5% with balanced 50:50 volume/price mix
• Normalized PAT grew 9.3% YoY to Rs.2,731 cr, in line with management stated
• EBITDA margin of 23.0% within the guided 22-23% band
• Beauty & Wellbeing segment grew 12.4% YoY with stable margin of 27.6%
• Cost of materials grew only 3.1% YoY, indicating gross margin expansion

Risk Factors

• Reported PAT declined 2.2% YoY due to a non-recurring tax credit in the base quarter
• Home Care margin contracted 2.2 pp to 17.3%
• Personal Care growth moderated to 3.3% YoY with low-single-digit volume decline
• Underlying volume growth of 5% was slightly lower than Q4's 6%