HUL Q3 Results Review: Systematix Maintains 'Hold' On The Stock, Lowers Target Price — Here's Why

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Systematix Research Report

While volume pickup in key categories of detergents, dishwash, hair care, foods and premium skin is encouraging, we remain cautious on persistent weak demand in soaps, tea, mass skin and nutrition drinks.

We expect a gradual pickup in volume growth over FY26-FY27E as Hindustan Unilever Ltd. rejigs its portfolio to expand into highgrowth categories (laundry/dishwash liquids, bodywash, international foods, highscience products in nutrition). Realizations should benefit from -

1. higher pricing in soaps and tea,

2. normalization in detergents/ other categories and

3. improving product mix/premiumization.

However, we expect margins to remain range-bound as-

1. pricing lags inflation (due to demand/ competition concerns) and

2. sustained investment is needed in brand-building, partly offset by mix improvement from premium portfolios.

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