Hindustan Unilever Shares Fall Over 4% Despite In-Line Q4 Results

Market Performance

Hindustan Unilever shares tumbled sharply on April 24, 2025, shedding over 4% during intraday trade.

• Current Price: ₹2,323.90 (down ₹99.90 / -4.12%)
• Volume Traded: Over 64 lakh shares
• Day’s Range: ₹2,317.10 – ₹2,487.40
• Despite this fall, the stock is up ~3% over the past year.

This decline came even as the company reported quarterly earnings primarily in line with expectations.

Main News

Its muted margin guidance largely drove the drop in Hindustan Unilever shares. The company noted in its investor presentation that:

“Gross margins are expected to moderate as we continue to deliver the right price-value proposition.”

This cautious outlook on profitability caused investor sentiment to weaken, leading to a broad-based sell-off in the stock.

Margin Guidance Highlights:

• Gross margins to moderate in the near-to-mid term
• EBITDA margins are expected to remain in the 22–23% range

Company Details

Hindustan Unilever Ltd (HUL), one of India’s top FMCG companies, focuses on volume-led growth and portfolio transformation. It aims to increase investments in high-growth demand spaces backed by a strong innovation pipeline.

The management expects the business environment to improve gradually through FY2026:

• H1 FY2026 expected to outperform H2 FY2025
• Price growth is likely in the low single digits if commodity prices remain stable

Segment Highlights:

• Personal Care:
  • Profit up 5%
  • Bodywash posted double-digit growth
  • Non-hygiene categories witnessed high single-digit growth
  • Skin cleansing saw low single-digit growth
• Home Care:
  • Revenue of ₹5,815 crore (+2% YoY)
  • Premium fabric wash & conditioners drove performance
  • Liquids portfolio added to revenue growth
• Beverages:
  • Tea: Low single-digit growth, driven by pricing
  • Coffee: Continued double-digit growth
  • Maintained leadership in the value and volume of tea

Financial Snapshot

Revenue

• Standalone Revenue: ₹15,000 crore (+2.1% YoY)
• Consolidated Revenue: ₹15,670 crore (+3.02% YoY)

Net Profit

• Standalone Net Profit: ₹2,493 crore (+3.7% YoY)

Summary

While Hindustan Unilever shares reported steady Q4 numbers, the subdued margin outlook spooked investors. The company’s continued focus on innovation, premiumization, and volume-led growth remains intact. However, the near-term outlook on gross margins and price growth has made the market cautious.