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HUL's Q2 Revenue Surge Expected Amid Price Hikes
27 Oct
Summary
- HUL's revenue projected to rise 8.2% to Rs 17,582 crore for the September quarter.
- Profit expected to increase 3.6% to Rs 2,784 crore despite rising input costs.
- Brokerages anticipate double-digit revenue growth, excluding ice cream business.
Hindustan Unilever Ltd. (HUL) anticipates a robust revenue performance for the September quarter of fiscal 2027, with an anticipated year-on-year increase of 8.2% to Rs 17,582 crore. This growth is attributed to the ongoing impact of price hikes and a rebound in sales volumes.
While revenue is set to climb, operating profit growth may be constrained by elevated input costs. Net profit is forecasted to rise by 3.6% to Rs 2,784 crore, with Ebitda projected to increase by 7.7% to Rs 4,018 crore. Brokerages, however, have a more optimistic outlook, expecting double-digit revenue growth on a like-to-like basis.
Key factors investors will monitor include the balance between pricing-led growth and underlying volume recovery, as well as management's assessment of consumer demand trends in both rural and urban markets. Raw material inflation's impact on profitability will also be a significant focus.
Analysts from HSBC and UBS project double-digit revenue growth, supported by price increases and improving volumes. Nuvama anticipates around 13% growth on a like-to-like basis, driven by a 7% volume increase and 6% pricing growth, though they note a potential decline in gross margin.
