Hindustan Unilever (HUL) posted a 3.8% rise in consolidated net profit to ₹2,796 crore for the September quarter, while revenue climbed 14.4% to ₹18,386 crore, marking the strongest underlying sales growth in 14 quarters.
Underlying sales surged 15% and volume growth accelerated to 7%, the highest since the company’s early 2023 reporting. CFO Niranjan Gupta told analysts that price hikes were kept calibrated to offset the uptick in input costs, with a focus on avoiding eroding market share.
MD & CEO Priya Nair highlighted steady gains in rural markets, noting the company's rural business had improved sequentially over the past four quarters. She added that both urban and rural segments are now contributing equally to the overall expansion.
Home care led the quarter, reporting a 22% rise in underlying sales, yet the segment’s margin fell to 16.2% from 19.1% as petrochemical-based raw material costs climbed. Nair explained that the lag between price and cost in this category is a known risk, but the firm remains cautious.
Management plans to weigh additional price adjustments depending on commodity inflation trends, with a view to sustaining profitability in the coming quarters. Analysts expect a cautious approach until input cost pressures ease.
In Bengaluru, a small shopkeeper who stocks HUL products said the recent price hikes were noticeable but still affordable, noting that the brand’s popularity keeps customers coming back despite higher costs.