Hindustan Unilever to Adjust Prices, Cuts Costs to Manage Margin Pressure

Hindustan Unilever Ltd reported an 18% year-on-year increase in net profit for the March quarter at ₹29.30 billion, as per Reuters reports.  

Revenue rose 7% to ₹155.99 billion. EBITDA margin stood at 23.9%, up 10 basis points from a year earlier, indicating limited expansion despite higher costs. 

Cost Pressures from Crude-Linked Inputs 

The company cited rising raw material costs driven by higher crude oil prices following tensions in the Middle East. India’s dependence on imported oil continues to affect input costs across consumer goods categories.  

Material inflation during the quarter was estimated at 8% to 10%. 

Price Hikes and Cost Adjustments 

To manage cost increases, the company has taken price hikes in the range of 2% to 5% across select products. It has also adjusted pack sizes in some segments.  

Alongside pricing, spending has been tightened, including lower advertising and discretionary costs, to contain the impact on margins. 

Broader Sector Trend 

Similar cost pressures are visible across the sector. Companies such as Bisleri and AWL Agri Business have also increased prices to manage higher input costs.  

However, passing on the full extent of cost increases remains gradual due to competition and demand sensitivity. 

Margin Guidance and Focus Areas 

The company maintained its medium-term EBITDA margin guidance of 22.5% to 23.5%. It expects performance to improve by fiscal 2027, supported by a greater focus on premium segments and a smaller set of priority brands, including Horlicks. 

Read More: IndiGo Regains Operational Momentum in March 2026: OTP Crosses 88% in March After December Disruptions! 

Hindustan Unilever Share Price Performance  

As of April 30, 2026, 3:30 pm, Hindustan Unilever share price closed at ₹2,254.00, down 2.61% from the previous closing price. 

Conclusion 

Higher input costs linked to global developments continue to affect margins. The company is relying on limited price increases and cost control measures while retaining its stated margin outlook. 

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