Hindustan Unilever Share Price in Focus; Receives Income Tax Demand of ₹1,560 Crore for FY22

FMCG major Hindustan Unilever Ltd has disclosed that it received an income tax assessment order for the financial year 2021–22, involving a demand of ₹1,559.69 crore.

The company stated that the order relates to transfer pricing adjustments and corporate tax matters, and does not have a material impact on its financial position or operations.

Details of the Income Tax Assessment Order

The assessment order was issued by the Assistant Commissioner of Income Tax, Central Circle 5(2), Mumbai, and was received by the company on January 7, 2026. 

It pertains to the assessment year 2022–23 and includes adjustments linked to transfer pricing and disallowances under corporate tax provisions.

Company’s Response and Next Steps

Hindustan Unilever stated that it will challenge the assessment order by filing an appeal with the appropriate appellate authority within the prescribed timeline. 

The company has clarified that no penalties, sanctions or operational restrictions have been imposed as part of the order.

Impact on Financials and Operations

According to the company, the tax demand is not expected to have any material impact on its financial statements, business operations or ongoing activities. 

Management has indicated that routine legal and tax remedies will be pursued in line with standard practice.

One-Time Gain in Recent Quarter

Hindustan Unilever’s net profit for the recent quarter was supported by a one-time gain of ₹273 crore. This gain arose from the resolution of certain tax matters between authorities in the United Kingdom and India. No similar gain was recorded in the corresponding base quarter.

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Share Price Performance

Hindustan Unilever’s shares were trading lower during the session on January 9, 2026. The stock was last quoted at ₹2,369.20, down ₹17.50 or 0.73% from the previous close. The shares moved within a range of ₹2,361 to ₹2,386 during the trading session.

Conclusion

The income tax demand received by Hindustan Unilever for FY22 reflects ongoing tax assessment processes related to transfer pricing and corporate tax issues. While the company plans to contest the order, it has indicated that there is no expected material impact on its financial or operational position at this stage.

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