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HUL Posts Modest Q2 Profit Rise, Declares Rs 19 Dividend as Brokerages Split on Outlook

Markets are weighing margin pressure from GST-led destocking against guidance for trading to normalise from early November.

Overview

  • Consolidated net profit rose 3.8% to Rs 2,694 crore on revenue of about Rs 16,061 crore, reflecting roughly 2% growth in the September quarter.
  • A one-time tax gain of approximately Rs 184 crore lifted reported earnings, while EBITDA margin contracted to about 23.2% with higher brand investments.
  • The board approved an interim dividend of Rs 19 per share with a record date of November 7 and payment on November 20, totaling roughly Rs 4,464 crore, including about Rs 2,763 crore to British promoter entities.
  • Shares climbed up to 3% on Thursday before sliding nearly 5% on Friday as brokerages delivered mixed views, with Jefferies and Citi retaining buys and Investec and Morgan Stanley staying cautious.
  • Management cited GST rate changes and prolonged monsoon as transitory drags and signaled a gradual recovery from early November, a sector pattern echoed by Colgate-Palmolive India’s weaker Q2 results.