Hindustan Unilever Gets Rs 1,986-Crore Tax Demand, Says 'No Material Impact'

Hindustan Unilever Gets Rs 1,986-Crore Tax Demand, Says 'No Material Impact'

HUL Tax Notice: Hindustan Unilever Ltd (HUL) has received an assessment order and a notice of demand of Rs 1,986.25 crore from the income tax department for the financial year 2020-21 (AY 2021-22), the company informed the stock exchanges on October 31. The communication, received from the tax department, pertains to transfer pricing adjustments and certain corporate tax disallowances, including depreciation claims.

The FMCG major, which owns brands such as Dove, Surf Excel and Lifebuoy, said the tax authorities have questioned the valuation of related-party transactions and challenged certain payments made to group entities. The company clarified that the order does not have any material impact on its financials, operations or business activities.

“There is no material impact on financial, no impact on operation or other activities of the Company due to the Order," HUL said in the BSE filing.

The company also said it will file an appeal before the appellate authority within the permissible timeline.

HUL Q2 Results

Last month, Hindustan Unilever Ltd reported a 3.8 per cent rise in its consolidated net profit to Rs 2,694 crore for the second quarter ended September 30, 2025. Its revenue or sales during July-September grew 2.1 per cent to Rs 16,034 crore, compared with Rs 15,703 crore in the year-ago period.

HUL reported a “flat underlying volume growth" due to the transitory impact of GST changes and prolonged monsoon in parts of the country.

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Its net profit had stood at Rs 2,595 crore in the corresponding period last year, according to a regulatory filing. During the quarter, the EBITDA margin stood at 23.2 per cent, which was lower by 90 bps year-on-year amidst higher investments in the business, said HUL, part of British multinational consumer goods company Unilever Plc.

HUL's total expenses in the September quarter were at Rs 12,999 crore, up 3.32 per cent. Its total income, which includes other revenue, was up 1.5 per cent to Rs 16,388 crore.

Source: News18
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