Hindustan Unilever Ltd (HUL), the Indian subsidiary of UK-based Unilever Plc, announced on Friday that it has received a tax demand notice worth ₹1,986 crore from the Income Tax Department. The notice pertains to FY 2020–21 and disputes the valuation of certain related-party transactions as well as some depreciation claims made by the company.
In a regulatory filing, HUL stated, “The tax authorities have made transfer pricing adjustments in the nature of disallowance of payments to related parties or challenged the valuation of such related-party payments and corporate tax disallowances in the nature of depreciation claimed.”
The company confirmed that it intends to appeal the order before the appellate authority within the permitted time frame and clarified that the tax notice will have no impact on its ongoing business operations or financial position. The communication was issued by the Assistant Commissioner of Income Tax in Mumbai on Thursday.
The development comes just days after HUL reported a 3.8% rise in consolidated net profit to ₹2,694 crore for the July–September quarter of FY26, compared to ₹2,595 crore in the same period last year. Revenue increased 2.1% year-on-year to ₹16,034 crore, supported by underlying sales growth of 2% and flat volume growth, which the company attributed to GST transition effects and prolonged monsoon conditions.
During the quarter, EBITDA margin stood at 23.2%, down 90 basis points year-on-year due to higher business investments. Profit before exceptional items and tax declined 4.8% to ₹3,386 crore, from ₹3,558 crore in the same quarter last year.
HUL, which owns household brands such as Surf Excel, Rin, Lux, and Horlicks, also recently received approval from the National Company Law Tribunal (NCLT) to demerge its ice-cream business into a separate entity under the Kwality Wall’s brand.
Disclaimer: This article is for informational purposes only and is based on publicly available regulatory disclosures. It does not constitute tax, legal, or investment advice. Readers are advised to consult certified professionals before making any financial or legal decisions.
