FMCG major Hindustan Unilever (HUL) on Tuesday reported a 3% year-on-year (YoY) decline in consolidated net profit to Rs 2,673 crore for the first quarter of FY27, missing analysts' estimates. The company had posted a net profit of Rs 2,756 crore in the corresponding quarter last year. HUL attributed the decline in profit after tax (PAT) to a one-off tax credit in the year-ago period.Revenue from operations, however, rose 10.2% YoY to Rs 17,149 crore in Q1 FY27 from Rs 15,552 crore in the corresponding quarter of the previous financial year.HUL reported underlying sales growth (USG) of 10%, driven equally by volume and price, marking the company's strongest growth in 13 quarters.EBITDA for the quarter rose 8% year-on-year to Rs 3,947 crore from Rs 3,640 crore in the corresponding quarter last year. However, the EBITDA margin contracted by 40 basis points to 23% from 23.4%, according to the company's investor presentation.Following the release, HUL shares tumbled 5% to trade at Rs 2,064 per share on the BSE.Segment performanceHome Care: The segment posted 14% underlying sales growth (USG), its strongest performance in three years, driven by high-single-digit underlying volume growth (UVG). Disciplined market development and consumer-focused innovations helped strengthen market leadership while maintaining volume resilience.Beauty & Wellbeing: USG came in at 12%, supported by high-single-digit UVG. Hair Care delivered double-digit growth, led by premium products and future formats, while reinforcing market leadership. Skin Care and Colour Cosmetics reported high-single-digit growth, aided by double-digit expansion in Premium Skin Care.Personal Care: The segment reported 4% USG, primarily driven by pricing amid sustained palm oil inflation. Skin Cleansing posted mid-single-digit growth, with Premium Bars delivering competitive double-digit, volume-led growth. HUL also strengthened its leadership in the Bodywash category.Foods: The segment recorded 7% USG, driven by mid-single-digit UVG and continued momentum in Lifestyle Nutrition and Coffee. Premium Tea delivered low-single-digit UVG, while Coffee registered double-digit, volume-led growth, supported by the continued scale-up of RTD and Bru Gold. Lifestyle Nutrition maintained double-digit growth, with Boost crossing the Rs 1,000 crore annual turnover milestone. Horlicks Superfoods and RTD also continued to gain traction.HUL outlookHUL expects FY27 to be better than FY26, led by portfolio and channel transformation. Commodity volatility continues to persist, with inflationary pressures expected to remain in the short term. The company expects consolidated EBITDA margin to remain around the current guided range, while its focus remains on driving competitive, volume-led revenue growth anchored to its key priorities.