HUL Q4 result today: Shares rise 2%; here's what experts expect from FMCG major's Q4 earnings
Hindustan Unilever (HUL) shares climbed 2 per cent in morning trade on Thursday, April 24, ahead of their March quarter (Q4FY25) results. HUL share price opened flat at ₹ 2,422.15 against its previous close of ₹ 2,422.15 but climbed 1.8 per cent to an intraday high of ₹ 2,465. Around 9:35 AM, HUL share price traded 0.92 per cent higher at ₹ 2444.35. Equity benchmark Sensex was 0.10 per cent down at 80,036 at that time.
Extending gains to the second consecutive session, the FMCG stock closed 0.96 per cent higher at ₹ 2,422.15 on the BSE on Wednesday, thus rising over 7 per cent in April so far after a 3 per cent gain in March.
Hindustan Unilever share price has seen a tepid gain of 7.5 per cent over the last year, hitting a 52-week high of ₹ 3,034.50 on September 23 last year and a 52-week low of ₹ 2,136 this year on March 4.
Amid subdued demand and intense competition, experts believe investors will focus on management's commentary on inflation trends, pricing strategies, and consumer response to Lux and Lifebuoy's new formulations.
HUL has seen unimpressive volume growth for the last several quarters, and experts expect another quarter of muted earnings from the consumer goods bellwether due to rising commodity prices, subdued urban demand, and heightened competition.
While some anticipate the company will report flat to low single-digit volume growth, a few even suggest that HUL could be the weakest performer in terms of volume growth in the FMCG sector.
Jefferies expects HUL to post flat volumes, making it one of the weakest among its FMCG peers.
'Demand trends in the March quarter remained broadly similar to the December quarter, marked by subdued urban, even while there was a slight recovery in rural," Jefferies said.
Brokerage firm SMC Global Securities expects Hindustan Unilever to show weak performance across categories, particularly in soaps and tea, which may keep overall revenue growth flat.
The brokerage firm believes price cuts in detergents and increased discounting in the home care segment may offset the gains from price hikes in other categories.
According to SMC Global, HUL's volume growth may remain subdued, although home care and hair care may show positive momentum.
Raw material inflation, especially in tea and palm oil, may pressure gross margins.
"EBITDA margins are expected to remain flat year-on-year, supported by reduced advertising and staff costs, along with slightly improved operating leverage," SMC Global said.
Atul Parakh, CEO of Bigul, said that after reporting 1.6 per cent revenue growth in Q3, expectations for Q4 suggest modest improvement with approximately 2 per cent year-on-year revenue growth. This will likely be driven by 1.4 per cent price growth from strategic hikes in the soaps and tea categories.
Parakh expects HUL's volume growth to remain muted, with detergent price cuts impacting sequential top-line performance.
"While urban demand moderated in Q3, gradual rural recovery remains a key focus. Investors should monitor management commentary on Q1FY26 strategy, particularly how the company plans to capitalise on the potential consumption boost from the central government's recent tax relief measures. Margin performance will be closely watched after the slight dip to 23.4 per cent in the previous quarter," said Parakh.
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