Hindustan Unilever Ltd (HUL) has received a significant income tax assessment order of ₹1,559.69 crore for the financial year 2021-22 (assessment year 2022-23). The notice was received on January 7, 2026, from the Assistant Commissioner of Income Tax, Central Circle 5(2), Mumbai.

Tax Assessment Details

The income tax order pertains to transfer pricing adjustments and corporate tax disallowances. Despite the substantial amount involved, HUL has stated that the order will have no material impact on its financials, operations, or other business activities.

The company confirmed that no penalties, sanctions, or restrictions have been imposed in the order. HUL plans to file the necessary appeal with the appellate authority within the permissible timeline.

Recent Financial Performance

Hindustan Unilever's recent quarterly results showed mixed performance. The company's underlying volume growth for the quarter remained flat, aligning with CNBC-TV18 poll expectations of 0% to 1% growth.

The net profit for the quarter was significantly aided by a one-time gain of ₹273.00 crore, resulting from the resolution of tax matters between the UK and Indian authorities. There was no comparable one-time gain in the base quarter.

Revenue and Profitability Analysis

Revenue for the quarter stood at ₹15,585.00 crore on a standalone basis, representing a year-on-year growth of 0.50%. However, this fell short of the CNBC-TV18 poll expectation of 2.20% growth to ₹15,850.00 crore.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter declined by 2.30% from the previous year to ₹3,563.00 crore, which aligned exactly with market expectations of ₹3,560.00 crore.

Market Response

Shares of Hindustan Unilever Ltd ended at ₹2,389.70 on the BSE, declining by ₹9.70 or 0.40% during the trading session. The company's approach to handle the tax assessment through proper legal channels demonstrates its commitment to regulatory compliance while maintaining operational stability.

Hindustan Unilever has received a tax assessment order from tax authorities demanding ₹15.60 billion, marking a significant regulatory development for the consumer goods giant.

Tax Assessment Details

The company has disclosed receiving the tax assessment order, which represents a substantial financial demand from the tax authorities. The assessment order details are presented below:

Regulatory Compliance

The disclosure of this tax assessment order forms part of Hindustan Unilever's regulatory compliance obligations. Companies are required to inform stakeholders about material developments that could impact their financial position or operations.

Financial Impact Considerations

The ₹15.60 billion tax demand represents a significant amount that could potentially impact the company's financial planning and cash flow management. However, companies typically have various legal remedies available to contest such assessment orders through appropriate channels.

Next Steps

While the specific details regarding the nature of the tax assessment or the time period it covers have not been disclosed, such orders typically allow companies to respond through established legal and administrative processes. The company will likely evaluate its options regarding this tax assessment order in accordance with applicable regulations and procedures.