HUL Faces Rs 1,559 Cr Tax Demand for FY22; Assures No Business Impact

• Hindustan Unilever Ltd (HUL) received an income tax demand of Rs 1,559.69 crore for FY22 (AY 2022-23) from Mumbai tax authorities.
• The notice, issued on January 7, 2026, relates to transfer pricing adjustments and corporate tax disallowances.
• HUL stated the assessment order will have no material impact on its financials, operations, or other activities, and will appeal the decision.
• The FMCG major reported a 3.8% YoY rise in consolidated net profit to Rs 2,694 crore for Q2 FY26, with revenue up 2.1% to Rs 16,034 crore.
• Quarterly performance was impacted by GST changes and monsoon, leading to flat underlying volume growth; EBITDA margin declined to 23.2%.

Why It Matters: HUL faces a significant tax demand but assures no business impact, while reporting mixed Q2 FY26 results.