HUL Faces Profit Dip Amidst Inflation Battle in Commodity Prices

Hindustan Unilever Ltd (HUL) reported a 3.35% decline in net profit for Q4 2025, affected by rising costs in palm oil, tea, and coffee. Despite this, product sales revenue grew to Rs 15,416 crore due to volume increase. The company strengthens market position and anticipates demand improvement.

Hindustan Unilever Ltd (HUL), a major player in the FMCG sector, announced a 3.35% drop in its consolidated net profit for the fourth quarter ending in March 2025. The decline, resulting in a net profit of Rs 2,475 crore, was primarily due to shrinking margins caused by inflation in key commodities like palm oil, tea, and coffee.

Despite the profit decline, HUL observed a positive trend in product sales revenue, which grew to Rs 15,416 crore, supported by increased volume sales. The company reported an underlying sales growth of 3% and an underlying volume growth of 2% for the quarter.

In a strategic move, HUL continued to fortify its market leadership through portfolio transformation and expansion in high-growth areas. CEO Rohit Jawa expressed optimism about improving demand conditions in the upcoming fiscal year. Meanwhile, the board has proposed a Rs 24 per share final dividend as part of its financial distribution strategy.

(With inputs from agencies.)