HUL shares jump 3% despite earnings miss! Here's why investors are buying

The stock climbed 3.2 percent to an intraday high of Rs. 2,092.40.

Brokerages Remain Bullish

Brokerages maintained a positive outlook on HUL, citing improving consumer demand, premiumisation trends and resilient margins as key drivers of long-term growth.

Analysts believe investors are looking beyond the June quarter earnings, with confidence supported by the company's strong revenue growth and steady volume expansion.

Q1 FY27 Financial Performance

For the quarter ended June 2026 (Q1 FY27), HUL reported a net profit of Rs. 2,673 crore, down 3 percent year-on-year from Rs. 2,756 crore. The decline was largely due to a one-off tax credit recorded in the corresponding quarter last year.

Revenue from operations rose 10.1 percent year-on-year to Rs. 17,341 crore, marking the company's strongest quarterly revenue growth in 13 quarters.

Sales and Margin Highlights

HUL reported Underlying Sales Growth (USG) of 10 percent, driven equally by pricing and volume growth.

Underlying Volume Growth (UVG) stood at 5 percent, reflecting improving consumer demand across categories.

The company's EBITDA increased 8.4 percent year-on-year to Rs. 3,947 crore, while the EBITDA margin declined 40 basis points to 23 percent, mainly due to higher input costs.

Investor Focus Shifts to Long-Term Growth

Despite the earnings miss, analysts said HUL's strong top-line growth, improving demand environment and continued premiumisation strategy have reinforced investor confidence.

The stock's sharp gain on Wednesday suggests the market remains optimistic about the FMCG giant's medium- to long-term growth prospects despite near-term margin pressures.