HUL Q2 Results: Volume Growth Highest In 22 Quarters As Pricing, Product Push Aid Sales Amid Inflation

Hindustan Unilever Ltd.'s underlying volume growth rose to 7% in the September quarter, its highest since the first quarter of FY22, as the consumer goods maker reported broad-based growth across home care, beauty and wellbeing, and personal care. The company attributed the growth to calibrated pricing actions, market-development initiatives, product innovation and stronger distribution as key elements of its strategy, even as elevated commodity prices continued to weigh on the operating environment.

Underlying sales growth reached 15%, the highest in 14 quarters, according to the company. Chief Executive Officer and Managing Director Priya Nair said the performance reflected the company's focus on building brands and strengthening distribution.

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HUL Q2 Results (Consolidated YoY)

• Net profit up 3.9% to Rs 2,790 crore versus Rs 2,685 crore (Bloomberg estimate: Rs 2,784 crore).
• Revenue up 14.5% to Rs 18,226 crore versus Rs 15,919 crore (Estimate: Rs 17,582 crore).
• Ebitda up 8% to Rs 4,089 crore versus Rs 3,785 crore (Estimate: Rs 4,018 crore).
• Ebitda margin at 22.4% versus 23.8% (Estimate: 23.1%).
• Interim dividend of Rs 19 per share declared.

The year-ago period included a one-off gain of Rs 273 crore from the resolution of prior years' tax matters. In the September 2026 quarter, exceptional items included a Rs 2 crore gain from the disposal of surplus assets.

What Drove Growth

Home Care was HUL's fastest-growing segment, with underlying sales growth of 22%, driven by double-digit volume growth across fabric wash and household care. The company said focused market-development initiatives and calibrated pricing actions helped improve penetration and support volume resilience. Liquids continued to record double-digit growth, while the Rs 99 Surf Excel Easy Wash pack supported premiumisation in powders.

Beauty and Wellbeing reported 16% underlying sales growth, led by double-digit volume growth. Hair Care maintained its double-digit growth trajectory, while Skin Care and Colour Cosmetics also recorded double-digit, volume-led growth. Premium products and innovations continued to outperform. HUL expanded Simple's skin-care portfolio, introduced body serum lotions under Dove and extended Minimalist's range across skin and hair care.

Personal Care recorded 9% underlying sales growth, led by double-digit growth in Skin Cleansing. Market-development initiatives for Pears and Dove bars supported volume-led growth, while sampling and in-store activations helped Bodywash strengthen penetration. Oral Care recorded low-single-digit growth, with premium innovations continuing to scale.

Foods also reported 9% underlying sales growth, although underlying volume growth was in the low single digits. Lifestyle Nutrition and Packaged Foods delivered double-digit sales growth, while coffee recorded high-single-digit growth driven by volumes. HUL said premium tea innovations continued to scale, and it expanded Horlicks into protein powder while refreshing Kissan Condiments' proposition.

Inflation And Margins

HUL's results presentation cited elevated commodity prices as part of the operating environment. Its response included calibrated pricing actions, accelerated savings and greater productivity in advertising and promotion spending. These measures formed part of the company's effort to protect its consumer franchise while pursuing volume-led growth.

Ebitda increased 8% year on year, but the margin in the supplied results flash narrowed to 22.4% from 23.8% a year earlier. The company's results release said its reported profit after tax was broadly flat when measured against the year-earlier period, which included one-off tax-related gains of Rs 273 crore in exceptional items. Profit after tax before exceptional items grew 9%.

Nair said the company remained focused on “delivering competitive, volume-led profit growth” as it continued investing in brands and long-term capabilities.

Dividend

HUL's board declared an interim dividend of Rs 19 per equity share of face value Re 1 for FY27. The record date is Nov. 12, 2026, and the dividend is scheduled to be paid on Nov. 25, 2026.

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