HUL to announce December quarter numbers today: Here's what to expect

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26 Aug, 2025 12:21

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FMCG major Hindustan Unilever (HUL) will report its December quarter scorecard on January 27 in which it may report healthy double-digit growth in PAT and revenue.

Brokerages expect demand recovery in most discretionary consumption categories, in line with the opening up of the economy.

Besides, brokerages expect a good recovery and growth in most personal care categories.

"RM price inflation has gathered pace but the Q3 gross margins would be largely protected for most companies thanks to low-cost inventory. We expect EBITDA margins to be healthy partly aided by cost savings," said Kotak Institutional Equities.

Kotak expects a 27.9 percent year-on-year (YoY) rise in HUL's reported PAT while net sales can witness a 19.2 percent YoY rise.

EBITDA, as per Kotak, can rise 19.5 percent YoY and EBITDA margin can climb 6 bps YoY.

"We model 5.9 percent growth in organic revenues (up 19.2 percent YoY including GSK-CH acquisition) led by 5 percent growth in UVG (organic)," said Kotak.

The brokerage firm expects (1) good pick-up in winter portfolio (strong 3Q) after a late start (soft pre-season stocking in 2Q), (2) bounce back in GSK-CH portfolio revenues to 10 percent growth following supply-side disruption in 2Q, (3) improvement across color cosmetics, deodorants and out-of-home consumption categories, and (4) continued weakness in detergents.

It expects a 5.5 percent growth in the personal care segment, a 1.5 percent YoY growth in the home care segment and a 15 percent growth in packaged food and refreshments segment (organic) partly aided by price increases in the tea segment.

The estimates of brokerage firm Motilal Oswal Financial Services shows a 20 percent YoY change in the company's net sales and a 19.8 percent YoY rise in reported profit.

Motilal expects a 17.7 percent YoY rise in the company's EBITDA but the EBITDA margin may shrink to 24.4 percent in Q3FY21 against 24.9 percent reported in Q3FY20.

Outlook for the pace of rural and urban growth, competitive intensity, downtrading and RM cost will be in focus, Motilal Oswal pointed out.

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