The decline reflects a prolonged period of underperformance, even as the Indian consumer-goods giant continues to trade at a substantial premium to Unilever.
HUL shares have fallen 21% in dollar terms so far this year, putting the stock on track for a third straight annual decline — its longest losing streak on record, according to data compiled by Bloomberg.
The contrast is striking given how far HUL’s valuation had climbed. The Indian unit’s market capitalisation crossed $90 billion in September 2021, when investor enthusiasm for Indian consumer stocks pushed valuations to elevated levels.
Unilever’s exposure to emerging markets has also made HUL an important part of its global portfolio. Asia Pacific and Africa contributed 44% of Unilever’s revenue, while the Americas accounted for 37% and Europe for the remaining 19%.
HUL generated revenue of $7.2 billion in FY26, compared with $57.1 billion reported by Unilever Plc for the 12 months ended December 2025. The parent posted net profit of $10.7 billion for the year, while HUL reported profit of $1.7 billion for FY26.
Indian subsidiaries of global multinationals have historically commanded a premium over their parents, reflecting the higher valuations typically accorded to Indian equities. HUL is no exception, but its prolonged stock-market weakness has significantly narrowed that gap.
HUL currently trades at 39.1 times one-year forward earnings, according to Bloomberg data, compared with 16.3 times for Unilever — a premium of nearly 140%. That premium, however, is well below the 275% recorded in September 2021.
Growth and margin pressures
The pressure on HUL comes as investors contend with slower growth and persistent raw-material inflation. Underlying volume growth, a key measure of demand for FMCG companies, slowed to 5% in the June quarter from 6% in the preceding quarter.
Rivals including Tata Consumer Products Ltd. and Nestlé India Ltd. appear to be growing faster, adding to concerns over HUL’s ability to sustain its market leadership.
The weakness also highlights the broader challenges facing consumer-goods companies as elevated commodity costs squeeze margins amid heightened geopolitical tensions in the Middle East.
That marks a sharp contrast with HUL’s performance over the past decade. The company has delivered substantial operational and financial growth: over the 10 years through FY26, turnover doubled, EBITDA tripled and operating cash flow quadrupled.
For now, investors appear to be looking beyond that long-term track record and focusing more closely on the company’s ability to reignite growth while navigating higher input costs.
Still, analyst sentiment remains broadly constructive. Of the 42 analysts covering HUL on Bloomberg, 30 have a Buy recommendation, while nine rate the stock Hold and three recommend Sell.