HUL Shares Surge Over 8% on Strong Q1 Results

Hindustan Unilever Ltd (HUL) shares surged over 8% after announcing Q1 FY26 results, with net profit rising nearly 6% to ₹2,768 crore and revenue up over 5% to ₹16,296 crore, driven by 5% underlying sales and 4% volume growth. The company cited a recovery in both rural and urban demand, supported by favorable macroeconomic conditions and increased investment in portfolio transformation, despite a 130 basis point drop in EBITDA margin to 22.8%. HUL outperformed broader market indices, becoming the top gainer on the Nifty 50 and Sensex, and saw a significant rise in market capitalization. Brokerages responded positively, issuing upgrades and raising price targets due to HUL's volume-led growth strategy and improving consumption trends. Outgoing CEO Rohit Jawa noted a pick-up in urban demand, especially in smaller cities and towns, and will hand over leadership to Priya Nair. HUL reported strong performance in segments like beauty and wellbeing, and expects to sustain momentum with stable commodity prices and continued consumption recovery.