7 November 2026 | Curated by Gurdeep Singh, Amritsar, Punjab
Hindustan Unilever Limited (HUL) delivered its strongest underlying sales growth in 14 quarters during the September 2026 quarter, supported by broad-based demand across home care, beauty, personal care and foods. The company reported 15% underlying sales growth and 7% underlying volume growth, indicating that the improvement was not driven only by price increases.
For Q2 FY27, HUL reported turnover of ₹18,071 crore. EBITDA increased 8% year-on-year to ₹4,089 crore, with an EBITDA margin of 22.6%. Profit after tax before exceptional items rose 9%, while reported profit after tax was broadly flat at approximately ₹2,796 crore because the year-ago period included a one-off tax-related gain.
Volume growth becomes the key highlight
HUL’s 15% underlying sales growth (USG) was accompanied by 7% underlying volume growth (UVG). USG measures sales growth after adjusting for acquisitions and disposals, while UVG tracks changes in the volume and mix of products sold. The two measures together offer a clearer view of demand than revenue growth alone.
The company said this was its highest underlying sales growth in 14 quarters. The performance suggests that consumers continued purchasing across several everyday product categories, while HUL’s market-development initiatives, distribution reach and product launches supported demand.
Profit before exceptional items grows 9%
Profit after tax before exceptional items increased 9% year-on-year to approximately ₹2,795 crore. Reported profit after tax was ₹2,796 crore, broadly unchanged from the year-ago figure of ₹2,791 crore on the continuing-operations comparison.
The difference is explained by a one-off tax-related gain of ₹273 crore included in the prior-year base period. Without that unusual benefit, the underlying profit comparison is stronger. This distinction matters: the reported number remains the statutory outcome, while the before-exceptional measure helps explain how the ongoing business performed.
EBITDA rises, but margin remains under pressure
EBITDA grew 8% to ₹4,089 crore. The EBITDA margin was 22.6%, down 140 basis points year-on-year, although it remained within the range indicated by management.
Margin movement is important for a consumer-goods company because higher sales do not always translate into proportionate profit growth. Raw-material costs, product mix, advertising and promotion, distribution expenses and competitive pricing can all affect profitability. HUL’s volume-led growth is encouraging, but investors will want to see whether margins stabilise as sales momentum continues.
Home Care leads segment performance
Home Care delivered 22% underlying sales growth, supported by double-digit volume growth. Fabric wash and household care both recorded broad-based growth across brands and formats. Liquid detergents continued to expand, while premiumisation in selected products supported the segment’s performance.
Beauty and Wellbeing records 16% growth
Beauty and Wellbeing delivered 16% underlying sales growth, also driven by double-digit volume growth. Hair care accelerated, while premium skin care and colour cosmetics recorded strong volume-led performance. HUL continued expanding its portfolio through product introductions and updates across brands including Simple, Vaseline, Dove and Minimalist.
Personal Care and Foods maintain positive momentum
Personal Care recorded 9% underlying sales growth. Skin cleansing was a key contributor, with double-digit growth supported by brand activity and product positioning. Oral care recorded low-single-digit growth.
Foods also delivered 9% underlying sales growth, with low-single-digit volume growth. Lifestyle nutrition and packaged foods were important contributors, while coffee recorded high-single-digit growth. HUL expanded its nutrition portfolio with a protein-focused Horlicks product and refreshed selected packaged-food propositions.
Interim dividend of ₹19 declared
HUL’s board declared an interim dividend of ₹19 per equity share for FY2026–27. The record date is 12 November 2026. Shareholders should check the company’s official corporate-action information and their broker or depository records for eligibility and payment details.
What should investors watch next?
Volume-led demand: Whether 7% underlying volume growth can be sustained across urban and rural markets.
Margins: Whether the 22.6% EBITDA margin stabilises as input costs, pricing and promotional activity change.
Home Care: Whether the segment can maintain its strong 22% underlying sales growth.
Premium products: Whether premium skin care, hair care and nutrition launches generate repeat purchases.
Consumer spending: Whether demand remains broad-based as households respond to prices, incomes and seasonal factors.
The bigger picture
HUL’s Q2 FY27 performance shows a meaningful improvement in sales momentum, with 15% underlying sales growth and 7% volume growth. Profit before exceptional items rose 9%, while reported profit remained broadly flat because of a one-off tax benefit in the previous year’s comparison. EBITDA increased, although the margin declined by 140 basis points.
The next challenge is to convert stronger volumes into sustained profitable growth. If demand remains broad-based and margins stabilise, HUL could enter the next phase of FY27 with a firmer operating foundation. For India’s consumer-goods sector, the results provide an encouraging signal about demand, while also highlighting the importance of cost control and product mix.
This article is for news and general information only. It is not investment advice or a recommendation to buy or sell any security. Readers should review official company disclosures and consider their own financial circumstances before making investment decisions.
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