HUL’s Q1 growth outpaces ITC as brokerages weigh margin recovery and dividends
HUL posted 10% underlying sales growth in Q1 FY27, while ITC reported Rs 29,523 crore in revenue amid cigarette-tax-led margin pressure. Brokerages see stronger growth visibility at HUL, while ITC’s appeal rests on margin recovery potential and a higher estimated dividend yield.
ITC and HUL posted resilient Q1 FY27 results, with ITC managing cigarette-tax-led margin pressure while expanding FMCG, and HUL delivering 10% underlying sales growth. Brokerages favour HUL for growth visibility and ITC for dividend-supported cigarette-margin recovery.
Why this matters
ITC’s Q1 comparison follows reports of a 5% cigarette-volume decline and a 15.6% profit fall, even as FMCG-Others revenue rose 12%. HDFC Securities also included ITC in its post-Q1 FY27 coverage review.
retail-company is accelerating, up 226,633% QoQ.