HUL gets Rs 1,559 crore income tax demand for FY22, says no impact on business

A Hindustan Unilever Limited (HUL) 'Smart Fill' refilling machine is seen inside a supermarket in Mumbai,

• HUL gets Rs 1,559.69 crore tax order for FY22, plans to appeal.
• HUL Q2 net profit up 3.8% to Rs 2,694 crore; revenue rises 2.1% to Rs 16,034 crore.
• EBITDA margin drops to 23.2% as higher spending impacts profitability.

Did our AI summary help?

FMCG major Hindustan Unilever Ltd (HUL) on Thursday, January 8, said it has received an income tax assessment order demanding Rs 1,559.69 crore for the financial year 2021–22 (assessment year 2022–23).

The notice, received on January 7, 2026, was issued by the Assistant Commissioner of Income Tax, Central Circle 5(2), Mumbai, and relates to transfer pricing adjustments and certain corporate tax disallowances.

HUL said the assessment order will have “no material impact on the financials, operations or other activities of the company.” The company added that it will file the necessary appeal with the appropriate appellate authority within the prescribed timeline. It also clarified that no penalties, sanctions or restrictions have been imposed under the order.

Shares of Hindustan Unilever Ltd ended the day at Rs 2,389.70 on the BSE, down Rs 9.70, or 0.40 percent.

Hindustan Unilever Ltd : Second Quarter Results

Hindustan Unilever Ltd (HUL) reported a 3.8 percent year-on-year increase in consolidated net profit to Rs 2,694 crore for the quarter ended September 30, 2025, compared with Rs 2,595 crore in the same period last year.

The FMCG major’s revenue from operations during the July–September quarter rose 2.1 percent to Rs 16,034 crore from Rs 15,703 crore a year ago. Total income, including other revenue, increased 1.5 percent to Rs 16,388 crore.

HUL, which owns brands such as Rin, Surf Excel, Lux and Horlicks, said it saw “flat underlying volume growth” during the quarter due to the “transitory impact of GST changes and prolonged monsoon conditions in parts of the country.”

The company reported a “consolidated Underlying Sales Growth (USG) of 2 per cent and a flat Underlying Volume Growth (UVG) in the September Quarter of 2025,” noting that quarterly performance was impacted by temporary external factors.

EBITDA margin for the quarter stood at 23.2 percent, down 90 basis points year-on-year, as the company stepped up investments in the business. HUL said higher spending weighed on margins during the period.

Profit before exceptional items and tax declined 4.8 percent to Rs 3,386 crore in the second quarter of FY26, compared with Rs 3,558 crore in the year-ago period. However, profit after tax rose 4 percent, “primarily driven by one-off positive impact (Rs 184 crore) pursuant to resolution of prior years’ tax matters between UK and Indian tax authorities.”

Total expenses during the September quarter increased 3.32 percent year-on-year to Rs 12,999 crore.