Why HUL shares dropped over 4% despite reporting in-line Q4 numbers

The Q4 numbers were mostly in line with estimates; however, the company's forward-looking statement made investors cautious.

In its investor presentation, HUL said that it expects growth to gradually improve during the year, led by portfolio transformation and improving macro conditions. It expects the first half of FY26 to be better than the second half of the previous fiscal year (FY25). However, the company added that if commodities remain where they are, price growth is expected to be in the low single-digit range.

HUL further said that it continues to focus on driving volume-led competitive growth.

The FMCG major further said that gross margin is expected to moderate as "we continue to deliver the right price-value proposition".

The company says it is stepping up investments to land portfolio transformation in high-growth demand spaces, supported by a strong innovation pipeline. Consequently, the EBITDA margin is expected to be within a healthy range of 22-23%.

Commodity price movements | Inflation (FY’25 vs FY’24)