Why HUL Share Price is Rising?

Indian markets are experiencing a recovery on 31 July, 2025, following a sharp fall in morning trades. At the time of writing, the Nifty 50 index is trading around 24,904 points, up by about 47 points from its previous close. The BSE Sensex is up 121 points at 81,611 points.

The market sentiment in early trades was impacted by external factors such as the imposition of a 25% tariff by the US on India starting 1 August 2025.

One stock that is rising sharply is Hindustan Unilever (HUL). Here are some reasons behind it...

2 Reasons Why HUL Share Price is Rising

#1 Good Q1 2026 Numbers

HUL's Q1 2026 numbers are encouraging.

Revenues of the company at Rs 163.23 billion (bn) grew by 5% YoY during the quarter. The earnings before interest, tax, depreciation and amortisation (EBITDA) for Q1 2026 were Rs 35.58 bn. That said, the EBITDA margin at 22.6% declined by 120 bps YoY due to some cost pressures.

The net profit for the quarter grew 6% year on year to Rs 27.68 bn, versus Rs 26.12 bn. This number seems to have gone down well with investors.

Nevertheless, the results must be read in the context of a challenging environment for most leading fast-moving consumer goods companies.

#2 HUL's Impressive Volume Growth

HUL's volume growth for Q1 FY 2026 was about 4%, which was higher than investor estimates. The volume growth is keenly watched by most investors in FMCG companies like HUL, because it is the most important operational indicator that reflects the company's ability to capture market opportunity and increase its product consumption.

What Next?

HUL's growth strategies will now be headed by a new managing director (MD) and CEO, Priya Nair. She takes charge at HUL from 1 August 2025 and is the first woman CEO in HUL's 92-year history, having a strong track record within HUL and Unilever since 1995.

She has held key leadership roles in sales, marketing, and global strategy, particularly in the beauty & wellbeing segment.

Investors are optimistic that her deep understanding of the Indian market and extensive experience will help HUL elevate its performance, drive growth, and navigate evolving consumer preferences, especially in the wellness-focused products.

As far as the industry is concerned, the FMCG sector is facing margin pressure. This has already been displayed in the results of HUL. Rising and volatile input costs will have to be managed if HUL has to manage its aspirations of double-digit EPS growth driven by topline in the mid to long term.

Moreover, there is fierce competition. Emerging business models such as eB2B marketplaces and quick commerce platforms can disrupt traditional distribution.

Urban consumption has cooled down since 2024, while rural demand, although recovering, remains fragile due to inflation and erratic weather affecting agricultural incomes.

In short, HUL will have to navigate a volatile environment characterised by cost pressures, competitive disruption, supply chain complexities, and changing consumer behaviour.

How Shares of HUL Have Performed Recently

Over the last one month, the HUL share price has gained close to 10% from the level of Rs 2,294 to the current levels of Rs 2,526.

However, in past one year, shares of the company have lost 6.6%.

The stock hit a 52-week high of Rs 3034.5 on 23 September 2024, while its 52-week low was Rs 2,136 on 4 March 2025.

About HUL

HUL is India's largest fast-moving consumer goods company and a subsidiary of the global Unilever group.

HUL operates across a broad spectrum of categories such as personal care, home care, nutrition, beauty, hygiene, and wellness, with over 50 popular brands such as Lifebuoy, Surf Excel, Dove, Lux, Horlicks, and Lakme.

These brands are deeply ingrained in Indian consumers' lives, reaching 9 out of 10 Indian households through an extensive distribution network of over 9 million retail outlets.

HUL's strategy focuses on innovation, premiumisation of products, and rural market penetration supported by initiatives like low-unit price packs and a growing direct-to-consumer business.

To know more, check HUL's fact sheet and latest quarterly results. You can also compare HUL with its peers on our website.

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Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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