HUL's Q1 FY26 ad spend down 1.4% YoY to Rs 1,656 crore, but up 9.6% QoQ

HUL reported a 6% increase in its net profit year-on-year during the quarter to Rs 2,768 crore.

By  Storyboard18| Jul 31, 2025 11:02 AM
HUL recorded a 5% jump in its revenue from operations to Rs 16,296 crore in Q1 FY26

Hindustan Unilever Limited (HUL) on Thursday announced its Quarter 1 results for the fiscal year 2026. The consumer goods company reported a 6% increase in its net profit year-on-year during the quarter to Rs 2,768 crore. In the previous fiscal FY2025, HUL recorded a profit of Rs 2,612 crore in Q1.

The manufacturer of brands such as Surf Excel, Dove, and Lifebuoy, among others, recorded a 5% jump in its revenue from operations to Rs 16,296 crore in Q1 FY26 compared to Rs 15,497 crore in the corresponding quarter in FY25.

The profit and revenue surge has come despite the company slashing its advertisement and promotional expenditure by 1.4% year-on-year. Who is Priya Nair – the first-ever female CEO and MD of HUL?

In Q1 FY26, HUL's ad spending stood at Rs 1,656 crore, compared to Rs 1,681 crore in Q1 FY25. However, when compared to the previous quarter (Q4 FY25), HUL ad spend has risen by 9.6%. In the March quarter, HUL ad spending was down at Rs 1,510 crore.

"FMCG demand has continued to remain stable, with a gradual uptick in recency. Encouraged by favourable macro-economic indicators, we strategically stepped up our investments to effectively advance our portfolio transformation agenda in this quarter," HUL's outgoing CEO and Managing Director Rohit Jawa said. On 1 August 2025, Priya Nair is set to head the the FMCG brand--company's first woman CEO ever.

HUL posted a significant jump in revenue across the segments. According to the Q1 FY26 filing, the beauty segment of HUL, comprising brands such as Glow & Lovely, Elle 18, and Lakme, recorded a 10.6% YoY jump in revenue to Rs 3,631 crore.

The company's 'Home Care' segment, which includes brands like Comfort, Vim, and Domex, reported a revenue of Rs 5,777 crore in Q1 FY26--an increase of 1.9% YoY.

Household Care delivered double-digit UVG driven by dishwash. Liquids portfolio in Home Care continued its double-digit growth momentum, HUL mentioed.

The revenue of personal care segments and foods stood at Rs 2,540 crore (increase of 6.45% YoY) and Rs 4,016 crore (increase of 4.3% YoY), respectively, in Q1 FY25. "Bodywash sustained its competitive, double-digit growth. Oral Care witnessed mid-single digit growth led by Closeup," according to the company.

"Foods delivered 5% USG with a mid-single digit UVG. Beverages (Tea and Coffee) grew in double-digit. Tea delivered high-single digit growth driven by price and volume. Coffee continued its strong double-digit growth trajectory, led by price," HUL added.

HUL has predicted low-single digit range price growth if commodities remain where they are in the upcoming quarter. The FMCG major has projected an improvement in gross margin to improve sequentially, while the consolidated EBITDA is expected to remain within the 22-23% range.

First Published onJul 31, 2025 10:30 AM

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