The shares of Hindustan Unilever (HUL) jumped nearly 8 percent on August 1, taking the stock's gains in two days to 12 percent. This comes after brokerages issued positive notes for the stock after the release of the firm's April-June quarter results.

Hindustan Unilever (HUL) on July 31 reported a 6 percent year-on-year rise in consolidated net profit to Rs 2,768 crore for the quarter ended June 2025, aided by lower tax expenses and volume-led sales growth across key categories. Revenue (total sales) grew 5 percent to Rs 16,323 crore, with underlying volume growth (UVG) at 4 percent and underlying sales growth (USG) at 5 percent, HUL said in a stock exchange filing.

Profit after tax before exceptional items declined 5 percent year-on-year to Rs 2,526 crore, while earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter stood at Rs 3,718 crore, marginally down from Rs 3,744 crore in the year-ago period. The EBITDA margin declined 130 basis points to 22.8 percent, in line with the company’s guidance, as HUL continued to step up business investments.

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Goldman Sachs upgraded HUL shares to 'Buy' from its earlier 'Neutral' rating, and raised its target price to Rs 2,900 per share, from its earlier estimate of Rs 2,400 per share. The latest target price implies an upside potential of nearly 15 percent from the stock's previous closing price.

According to Goldman Sachs, HUL is witnessing a turnaround which is fuelled by a combination of macro factors and internal initiatives, according to the note cited by CNBC-TV18. The international firm is hopeful that HUL's revenue growth will speed up to high-single-digit levels by the second half of the ongoing financial year 2026 and in financial year 2027.

JM Financial retained its 'Buy' rating on the stock, but increased its target price to Rs 2,770 apiece. The domestic brokerage said that the firm’s Q1 earnings were in line with its estimates. "We like HUL's strategy pivot to focus on growth at the cost of near-term margin. Mgmt. commentary on outlook remains optimistic – volume recovery to continue, GM also expected to improve sequentially as pricing/NMI gap reduces. Consol. margin guidance remains unchanged at 22-23% (delivered closer to upper end in 1Q). With macro narrative improving along with clear step up in portfolio interventions by HUL, the worst seems to be behind. Initial benefits are visible with uptick in sales for Market Makers/Future Core portfolio & further gradual recovery in Core (GAL/Lifebuoy) should also follow," it added.

Motilal Oswal Financial Services kept a 'Buy' call on the stock, with a target price of Rs 3,000 apiece. This implies an upside potential of nearly 19 percent from the stock’s previous closing price. "The company plans to focus aggressively on volume acceleration, alongside new launches and the reactivation of its value proposition, which is expected to drive better growth in FY26," the domestic brokerage said.

HUL shares hit a day’s high of Rs 2,727 in early morning trade. The stock later pared some gains to trade 2 percent higher at Rs 2,578 apiece.