HUL Swings 5% in Volatile Trade Post Q2 Results as Stock Lingers Near Six-Year Lows
Shares of fast-moving consumer goods (FMCG) major Hindustan Unilever Ltd (HUL) witnessed sharp volatility on Wednesday following the announcement of its financial results for the quarter ended September 30. After an initial rally of over 2% to an intraday high of ₹1,861 on the National Stock Exchange (NSE), the stock surrendered its gains and dropped to an intraday low of ₹1,765.50—swinging more than 5% during intraday trade and hovering close to its six-year trough.
The selling pressure follows a multi-month downtrend where the stock hit an over six-year low of ₹1,758.60 in the prior trading session, marking its weakest valuation levels since March 2020. In the calendar year so far, HUL has dropped around 24%, underperforming benchmark indices.
Q2 Financial Highlights
HUL reported a 3.9% year-on-year (YoY) increase in consolidated net profit attributable to owners of the parent at ₹2,790 crore for the July-September quarter, compared to ₹2,685 crore reported in the corresponding quarter of the previous financial year. Profit after tax before exceptional items rose 9.5% YoY to ₹2,795 crore.
Consolidated revenue from operations expanded 14.5% YoY to ₹18,226 crore. The FMCG major delivered underlying sales growth of 15%—its strongest pace in 14 quarters—accompanied by an underlying volume growth of 7%.
Key Financial Metrics:
- Consolidated Net Profit: ₹2,790 crore, up 3.9% YoY from ₹2,685 crore
- Revenue from Operations: ₹18,226 crore, up 14.5% YoY
- Underlying Sales Growth: 15% (highest in 14 quarters)
- Underlying Volume Growth: 7%
- EBITDA: ₹4,089 crore, up 8% YoY from ₹3,785 crore
- EBITDA Margin: 22.6%, contracting 140 basis points from 24%
Segment Performance and Cost Pressures
The company's top-line performance was led by its home care and beauty & wellness divisions, which clocked double-digit revenue expansions. The home care segment delivered a standout 22% growth, aided by broad-based volume adoption across urban and rural formats. Meanwhile, the personal care and food segments grew around 8% each.
However, profitability margins remained an overhang for Dalal Street investors. Consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 8% YoY to ₹4,089 crore, but operating margins contracted by 140 basis points to 22.6% from 24% in the year-ago period due to higher input costs and a 15.9% rise in consolidated expenses to ₹14,574 crore.
Interim Dividend
The company's board approved an interim dividend of ₹19 per equity share of face value Re 1 for the ongoing financial year. HUL has fixed November 12 as the record date to determine eligible shareholders, with the dividend slated for disbursement on November 25.
