Goldman Sachs on HUL
Goldman Sachs upgraded the stock to a ‘Buy’ rating with a target price of Rs 2,900, implying a 6.3% potential upside from current levels. The brokerage said it expects HUL’s earnings per share (EPS) growth to accelerate to double digits over FY26–28, compared to a low single-digit EPS CAGR over FY23–26.
“Earnings growth is turning around, driven by a combination of macro factors and internal initiatives,” Goldman Sachs said, adding that it expects HUL’s revenue growth to accelerate to high single digits in H2 FY26 and FY27, with EBITDA margins recovering “once revenue growth picks up.”
The rally in shares followed the company’s Q1 results announced on Thursday, where the FMCG giant posted a 7.6% year-on-year (YoY) rise in standalone net profit to Rs 2,732 crore, up from Rs 2,538 crore in the same quarter last year.
JM Financial on HUL
According to JM Financial, “HUL’s 1QFY26 earnings print was in line with our expectation.” While gross margins missed expectations by around 100 basis points, the company managed to maintain EBITDA and adjusted profit through tighter control on advertising and other expenses, the brokerage said.“Consolidated USG across categories saw recovery vs. 4Q levels,” JM Financial noted, highlighting stronger traction in Beauty & Wellbeing (+7%), Personal Care (+6%), and Foods (+5%). The brokerage raised its valuation multiple from 50x to 53x and maintained a ‘Buy’ rating with a revised target price of Rs 2,770.JM Financial also flagged volume-led growth as a key driver going forward, particularly in Market Maker and Future Core portfolios. The brokerage said that “the worst seems to be behind,” citing improved macro conditions and strategic interventions by new MD and CEO Priya Nair.
Nuvama on HUL
Nuvama Institutional Equities retained a ‘Buy’ rating with a higher target price of Rs 3,240, up from Rs 3,055 earlier. The brokerage noted that revenue growth touched a seven-quarter high and volumes rose 4% YoY.
“Tea and coffee prices are expected to correct in FY26 primarily due to a strong crop, which shall give more firepower to HUL to invest back in the company, ultimately leading to sustainable volume growth,” Nuvama said.
Jefferies on HUL
Jefferies also retained a ‘Buy’ rating on HUL with a revised target price of Rs 3,000, calling it “one of the best contra ideas.” The brokerage said the 4% consolidated volume growth in Q1FY26 was the best in several quarters, aided by improving demand and a favourable base. It expects H1 FY26 to be stronger than H2 FY25 and flagged new CEO Priya Nair’s strategy as a key monitorable.
Jefferies expects margins to recover sequentially but noted that HUL will reinvest savings to drive growth, maintaining its EBITDA margin guidance at 22–23%.
Motilal Oswal on HUL
Motilal Oswal maintained a ‘Buy’ rating on HUL with a target price of Rs 3,000, citing early signs of success from the company’s growth initiatives. The brokerage said the company’s growth aspirations are beginning to materialise, as reflected in its 5% YoY rise in consolidated revenue for Q1FY26 and underlying volume growth of 4%, aided by a steady rural recovery and gradual urban improvement.
“The Q1 performance hints at the beginning of a much better volume print delivery in the coming quarters,” it said. While gross margins declined 190 basis points to 50.1% due to a lag between price hikes and input costs, the brokerage expects sequential improvement ahead, backed by favourable price-cost dynamics and benefits from HUL’s Net Productivity Program.
Emkay Global on HUL
Emkay Global retained an ‘Add’ rating on the stock while raising its target price by 12% to Rs 2,700. The brokerage increased its valuation multiple from 47x to 52x, citing “better growth and expected improvement in execution under the new leadership.”
“The management team, banking on improvement over the last three months, expects sequential growth recovery to stay,” Emkay said, adding that the company plans to focus on its Future Core and Market Maker portfolios, explore acquisitions, incubate new brands, and potentially leverage assets from its global parent.
Emkay Global noted that while Hindustan Unilever’s Q1 performance was largely in line with expectations, sales grew 5% YoY, EBITDA declined 1%, and adjusted profit fell 5%. Despite the mixed performance, it expects operating margins to remain stable in the near term, within the 22–23% range.
What should investors do?
While margin pressures persist, brokerages appear optimistic about Hindustan Unilever’s growth trajectory under its new leadership and its pivot toward high-growth categories. With multiple target price upgrades and commentary pointing to sequential improvement in both sales and margins, analysts largely recommend holding or accumulating the stock.
Also read | HUL Q1 Results: Standalone PAT rises 8% YoY to Rs 2,732 crore, revenue up 4%
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)