HUL Q4 Preview: Margins in focus amid rising raw material costs
Subscribe to enjoy similar stories.Investors will be keenly watching how the US-Iran war-induced volatility in raw materials in March impacted Hindustan Unilever Ltd's (HUL) margins when the packaged consumer goods giant announces its fourth-quarter results on Thursday.HUL is expected to post a profit after tax of ₹2,612 crore and revenue of ₹16,270 crore in the three months ended 31 March, according to Bloomberg's 21-analyst estimate. In the third quarter, it reported a net profit before exceptional items of ₹2,562 crore and revenue of ₹16,235 crore.The company, often considered a proxy for consumption in India, has had a tough March quarter, with several key inputs used across its product portfolio directly exposed to disruptions triggered by the US-Iran war.For example, the price of palm oil, a key ingredient for HUL, which makes soaps under brands such as Lux, Lifebuoy, Dove, Pears, Rexona and Hamam, has been rising as the war has pushed major producers such as Malaysia and Indonesia to increase their biodiesel capacity.Similarly, prices of liquid paraffin, used in creams, have edged up slightly.
However, soda ash, a key input in detergents, declined during the quarter. HUL markets detergents under brands such as Surf Excel, Rin, and Wheel, as well as personal care products like Dove and Pond’s.Meanwhile, low tea and coffee prices, down from their 2025 peaks, could provide some relief to the company.“Higher prices of crude-based commodities with palm oil remaining inflationary despite correction in tea and robusta coffee could impact margins,” analysts at Nomura said in a 3 April report.HUL's Q3 FY26 Ebitda (earnings before interest, taxes, depreciation and amortization) margin declined 50 basis points to 23.3%
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