HUL Q2 FY25 Results Preview: Standalone PAT likely to decline over 2%; margin may shrink by 80 bps

Hindustan Unilever (HUL)—the country's largest FMCG player by market value—will announce its Q2 earnings on Wednesday, October 23. Zee Business analysts expect HUL's standalone profit after tax (PAT) to come in at Rs 2,657 crore for the July-September quarter, translating to a decline of 2.2 per cent on a year-on-year basis. The FMCG major's quarterly revenue is estimated to increase 3 per cent to Rs 15,728 crore.

The EBITDA or Earnings Before Interest, Taxes, Depreciation, and Amortization at the entity is seen declining a tad by 0.2 per cent on-year to Rs 3,687 crore. In the same quarter last year, EBITDA was recorded at Rs 3,694 crore. EBITDA margin, meanwhile, is seen inching lower by 0.8 per cent or 80 basis points to 23.4 per cent as against 24.2 per cent in the same quarter last year.   

Volume at the company during the review period is estimated to climb 5 per cent YoY, with like-for-like (LFL) revenue growth estimated at 4 per cent.

Operating profitability at the company is seen to suffer during the quarter on the back of an increase in royalty. Last year in January, the company's board entered into a fresh royalty and central services agreement with Unilever for increasing royalty payments in a staggered manner over five years. The increase had to be 45 basis points (bps) from February to December 2023, 25 bps in 2024, and 10 bps in 2025.

Segment-wise growth estimates at HUL

The company's home care business is seen logging 5 per cent growth during the July-September quarter, while revenue from the beauty and personal care (BPC) segment is seen to clock 3 per cent LFL growth. 

Key monitorables

The management's commentary on demand outlook as well as raw material costs will be keenly watched out.

HUL share price performance

Ahead of its results tomorrow, shares of the FMCG major traded with marginal gains at Rs 2,703, up 0.35 per cent or Rs 9.4. In the last one year, shares of HUL have gained just 8 per cent, underperforming Nifty FMCG's return of over 16 per cent during the same time.