HUL Receives ₹1,986 Crore Tax Assessment Order, Reports Mixed Quarterly Results

Hindustan Unilever Limited (HUL) has received an income tax assessment order demanding ₹1,986.25 crore for FY21, issued by the Assistant Commissioner of Income Tax in Mumbai. The order involves transfer pricing adjustments and challenges to corporate tax depreciation claims. HUL stated the order will not materially impact its financials and plans to file an appeal.

Tax Assessment Details

Particulars	Details
Type of Communication	Assessment Order u/s 143(3) read with Sec. 144C(13) Income Tax Act, 1961 (ITA)
Issuing Authority	Assistant Commissioner of Income-Tax, Central Circle 5(2), Mumbai
Applicable Period	FY 2020-21 (AY 2021-22)
Demand Amount	₹1,986.25 Crores

Quarterly Results

In its recent quarterly results, HUL reported:

Net profit of ₹2,694.00 crore, exceeding expectations of ₹2,480.00 crore, aided by a one-time gain of ₹273.00 crore from resolution of tax matters.
Revenue of ₹15,585.00 crore, up 0.5% year-on-year but below the expected ₹15,850.00 crore.
EBITDA declined 2.3% to ₹3,563.00 crore with margins at 22.9%, down 60 basis points from last year.

Management Outlook

HUL's management expects margins to remain between 23-24% and anticipates a 50-60 basis points benefit post ice cream business demerger.

Market Response

HUL shares closed at ₹2,466.65, down 0.12%.

Stakeholders will be closely monitoring HUL's appeal against the tax demand and its potential impact on the company's financial position.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.17%	-2.02%	-1.94%	+5.27%	-2.48%	+18.99%

Hindustan Unilever Limited (HUL), a leading consumer goods company in India, has received approval from the National Company Law Tribunal (NCLT) for the demerger of its ice cream business. This significant corporate restructuring move marks a new chapter for the company's frozen dessert segment.

Key Details of the Demerger

The NCLT Mumbai Bench has sanctioned the Scheme of Arrangement for the demerger of HUL's Ice Cream Business Undertaking. This arrangement is between HUL and Kwality Wall's (India) Limited, along with their respective shareholders. The scheme falls under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013.

Timeline and Implementation

NCLT Order Date: 30th October, 2025
Effective Date: First calendar date of the month following the fulfillment of conditions mentioned in Clause 20 of the Scheme
Appointed Date: Same as the Effective Date

HUL has stated that it will inform the Stock Exchanges about the Effective Date in due course.

Impact on Shareholders

While this corporate action is significant, it's important to note that HUL continues to focus on shareholder value. In a separate announcement, the company declared an interim dividend:

Particular	Detail
Interim Dividend	₹19.00 per equity share
Face Value of Share	₹1.00
Record Date	7th November, 2025
Payment Date	20th November, 2025

This interim dividend will be paid to equity shareholders whose names appear in the Register of Members or in the records of the Depositories as beneficial owners on the Record Date.

Conclusion

The NCLT approval for HUL's ice cream business demerger represents a strategic move that could potentially streamline operations and create focused growth opportunities. Shareholders and market watchers will be keen to observe how this restructuring impacts the company's performance in the competitive consumer goods sector.