HUL share price: Shares of Hindustan Unilever Limited (HUL) surged over 8 per cent on Friday, August 1, after the company reported strong financial results for the quarter ended June 2025 (Q1FY26). The rally in the stock was further supported by a series of positive brokerage updates, which boosted investor sentiment and reinforced confidence in the FMCG major’s growth trajectory.
During intraday trade, the FMCG stock climbed as much as 8.1 percent to touch its day’s high of ₹2,728.10. This brings the stock within striking distance of its 52-week high of ₹3,034.50, last seen in September 2024. Notably, the stock had touched a 52-week low of ₹2,136 in March 2025, marking a sharp recovery in recent months.
Q1FY26 Earnings
Hindustan Unilever posted a 7.6 percent year-on-year rise in standalone net profit, which stood at ₹2,732 crore, up from ₹2,538 crore in the same period last year. Revenue from operations grew 3.8 percent to ₹15,747 crore, compared to ₹15,166 crore in Q1FY25.
However, profit after tax before exceptional items declined 5 percent year-on-year to ₹2,526 crore. Earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter came in at ₹3,718 crore, marginally lower than ₹3,744 crore in the year-ago period. EBITDA margin contracted by 130 basis points to 22.8 percent, in line with management’s guidance, as the company increased investments to support its portfolio transformation agenda.
Commenting on the performance, CEO and MD Rohit Jawa said that FMCG demand remained stable with a gradual recovery in recent times. “Encouraged by favourable macro-economic indicators, we strategically stepped up our investments to effectively advance our portfolio transformation agenda. This has resulted in competitive, broad-based growth with a USG (underlying sales growth) of 5 percent, driven by UVG (underlying volume growth) of 4 percent,” he said.
Looking ahead, Jawa expressed optimism on a continued recovery and reiterated confidence in HUL’s ASPIRE strategy, which focuses on innovation, digital acceleration, and strengthening presence in emerging channels and segments.
Brokerages Turn Bullish on HUL’s Turnaround Story
The earnings report prompted multiple brokerages to revise their ratings and target prices for HUL, highlighting signs of a turnaround in growth and profitability.
Goldman Sachs upgraded HUL to a “Buy” rating from its previous “Neutral” stance and raised the target price sharply to ₹2,900 from ₹2,400. This is the first “Buy” rating Goldman has issued on the stock since initiating coverage in 2022. The brokerage noted that a turnaround in HUL’s earnings, supported by favourable macroeconomic conditions and internal efficiency measures, is underway. It also expects revenue growth to accelerate to high-single digits by the second half of FY26 and further into FY27. Goldman added that margins will improve as operating leverage builds up on fixed and advertising costs. However, the brokerage cautioned that higher input costs and macro pressures on mass consumption remain key risks to the stock.
Nuvama Institutional Equities maintained its ‘Buy’ recommendation while raising its target price to ₹3,240 from ₹3,055, citing a strong growth recovery. The brokerage expects a correction in tea and coffee prices in FY26 due to a better crop, allowing HUL to reinvest in the business and drive sustainable volume growth.
Emkay Global Financial Services also retained its ‘Add’ rating, with a revised target price of ₹2,700, up from ₹2,400. The firm noted that under the leadership of new CEO Priya Nair, the company is likely to enhance execution focus and align the portfolio with evolving consumer trends. Emkay also pointed out that Unilever, in its global H1CY25 results, has reiterated plans to make disproportionate investments in key markets like the US and India, with emphasis on beauty, wellness, and personal care categories.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
