Unilever India slips after joining peers in flagging commodity inflation
UL•Hindustan Unilever shares fell 3% after it said commodity inflation is expected to remain elevated in the short term. Quarterly sales rose 15% to 173.99 billion rupees and profit increased 6% to 28.44 billion rupees, while margins contracted 140 basis points.
1. Costs and margins
Hindustan Unilever said it expects commodity prices to stay high, echoing comments from Nestle India. CFO Niranjan Gupta said the company took calibrated price increases and expects commodity inflation to remain elevated in the short term. Expenses jumped 16% in the quarter ended September 30, and margins contracted 140 basis points.
2. Quarterly results
Healthy demand for beauty and home care products, along with previous price increases, helped sales rise 15% to 173.99 billion rupees. Volume increased 7%, and profit rose 6% to 28.44 billion rupees ($299.01 million). CEO and Managing Director Priya Nair said the company would continue pricing depending on costs while prioritizing volume growth.
3. Fiscal outlook
Hindustan Unilever forecast an improvement in fiscal 2027 results from fiscal 2026, when volume climbed 4% and profit after tax was flat. The company cited resilient demand and wider distribution, and said it welcomed transparency in food labelling and would comply with regulations.
