Hindustan Unilever drops despite 4% YoY rise in Q2 profit
Profit before exceptional items and tax increased 9.45% YoY to Rs 3,812 crore. The company had reported an exceptional gain of Rs 2 crore from the disposal of surplus assets in Q2 FY26.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 8% year-on-year to Rs 4,089 crore. However, the EBITDA margin contracted 140 basis points to 22.6% from 24% in the corresponding quarter last year.
The company's underlying sales growth (USG) stood at 15%, while underlying volume growth (UVG) came in at 7%
Home Care delivered a strong performance, recording 22% underlying sales growth, driven by double-digit underlying volume growth. Both Fabric Wash and Household Care reported broad-based double-digit growth across brands and formats, while liquid products maintained their robust growth momentum.
Beauty & Wellbeing recorded 16% underlying sales growth, supported by double-digit volume growth. Personal Care registered 9% growth, led by strong performance in Skin Cleansing. The Foods segment also posted 9% underlying sales growth, with Lifestyle Nutrition and Packaged Foods driving performance.
On the mid-term outlook, the company expects its business performance to improve in FY27 compared with FY26, supported by a resilient demand environment and ongoing portfolio and channel transformation initiatives. The company said underlying demand conditions remain resilient, aided by healthy macroeconomic indicators.
On margin front, HUL expects commodity inflation to persist in the near term. However, the company expects its consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) margin to remain within its guided range of 22-24%. HUL reiterated its focus on driving competitive, volume-led profit growth, anchored in its ?Winning in New India? (WINI) strategy.
Priya Nair, CEO and managing director, commented, ?In September quarter, we delivered 15% Underlying Sales Growth, our highest in the last 14 quarters, with Turnover of Rs 18,071 crore. Underlying Volume Growth was strong at 7% reflecting sustained momentum driven by our focus on crafting desirable brands and strengthening future-fit Go-to-Market. Indian economy remains resilient, with healthy macro indicators supporting a positive consumption environment. We continue to invest in building longterm capabilities and remain anchored to the ?Winning in New India? strategy of delivering competitive, volume-led profit growth.?
Meanwhile, the company?s board declared a interim dividend of Rs 19 per share for FY27. The record date has been fixed as 12 November 2026, and the dividend will be paid to eligible shareholders on Wednesday, 25 November 2026.
Hindustan Unilever is in the FMCG business comprising primarily of Home Care, Beauty & Personal Care and Foods & Refreshment segments. The Company has manufacturing facilities across the country and sells primarily in India.
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