Shares of Hindustan Unilever Limited (HUL) jumped almost 12% in just two trading sessions after the company reported strong Q1 FY26 results. This sharp rise in stock price led several top brokerages to raise their target prices, boosting investor confidence.
In Q1 FY26, HUL’s net profit rose 6% year-on-year to ₹2,768 crore, helped by lower tax costs and strong sales volumes. Its revenue grew 5% YoY to ₹16,323 crore, this was HUL’s best revenue growth in nearly two years. The company also recorded 4% volume growth and 5% underlying sales growth. However, EBITDA margin fell by 130 basis points to 22.8%, mainly because the company increased its spending on advertising and promotions. This was already expected, as per management guidance.
Despite the dip in margins, analysts are optimistic. Goldman Sachs upgraded HUL from Neutral to Buy, raising the target price to ₹2,900 from ₹2,400. JM Financial kept its Buy rating and raised the target to ₹2,770, saying HUL is focusing on long-term growth even if short-term margins take a hit. Motilal Oswal gave the highest target at ₹3,000, pointing to better volumes and strong product innovation. In total, over 17 brokerages increased their target prices, bringing the average target to ₹2,607.50.
For investors, the current rally presents three possible views:
- Sell, if you’ve made solid profits after the quick rise and want to book returns.
- Buy, if you expect HUL’s margins and growth to recover in the coming quarters.
- Hold, if you’re already invested and prefer to wait for further gains.