HUL receives ₹1,986 crore income tax assessment order for FY21

FMCG major Hindustan Unilever Limited (HUL) on Friday (October 31) disclosed that it received an assessment order, along with a notice of demand of ₹1,986.25 crore under Section 156 of the Act. The communication, dated October 30, 2025, was issued by the Assistant Commissioner of Income Tax, Central Circle 5(2), Mumbai.

The assessment order pertains to the financial year 2020-21 (Assessment Year 2021-22) and involves transfer pricing adjustments, including disallowance of payments to related parties and challenges to corporate tax depreciation claims.

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HUL clarified that the order is not expected to have any material impact on the company’s financials, operations, or other activities. The company intends to file the necessary appeal with the appellate authority within the permissible timeline.

Second Quarter Results

The company reported a net profit of ₹2,694 crore, which is higher than the CNBC-TV18 poll of ₹2,480 crore. The net profit for the quarter was also aided by a one-time gain of ₹273 crore. There was no one-time gain in the base quarter. The one-time gain was a result of the resolution of tax matters between the UK and Indian authorities.

Revenue for the quarter stood at ₹15,585 crore on a standalone basis, while a CNBC-TV18 poll was expecting the growth to be at 2.2% to ₹15,850 crore. On a year-on-year basis, the topline was up 0.5%.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter declined by 2.3% from last year to ₹3,563 crore, which is exactly in line with expectations of ₹3,560 crore.

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EBITDA margin for the quarter stood at 22.9%, which is 60 basis points lower than last year, but higher than the CNBC-TV18 poll of 22.5%. The management expects the margins to remain between 23% to 24%. It also sees a margin benefit between 50 basis points to 60 basis points post the demerger of the ice cream business.

Shares of Hindustan Unilever Ltd ended at ₹2,466.65, down by ₹2.95, or 0.12%, on the BSE.Read about our editorial guidelines and ethics policy