Hindustan Unilever reports 15% underlying sales growth in Q2 2026

Hindustan Unilever Limited announced its financial results for the quarter ended September 30, 2026. The company reported a robust 15% underlying sales growth, its highest in 14 quarters, driven by strong volume growth of 7%. Profit After Tax before exceptional items grew by 9% to ₹2,795 crore, underscoring the resilience of its business model. The company also declared an interim dividend of ₹19 per share.

Hindustan Unilever Reports Strong Q2 Performance

Hindustan Unilever Limited has announced its financial results for the September quarter of 2026, showcasing a strong performance with a 15% underlying sales growth (USG), marking its highest growth in the last 14 quarters. The company also achieved a 7% underlying volume growth (UVG), demonstrating the strength of its brands and the effectiveness of its disciplined execution and portfolio transformation efforts. This top-line momentum translated into healthy profit growth, with Profit After Tax before exceptional items increasing by 9% to ₹2,795 crore.

Key Financial Highlights

For the quarter ended September 30, 2026, Hindustan Unilever delivered a Turnover of ₹18,071 crore. The company’s broad-based performance across segments, including strong double-digit growth in Home Care and Beauty & Wellbeing, contributed significantly to these results. Personal Care and Foods also saw a sequential step-up in growth, with 9% USG each. In terms of profitability, EBITDA Margin stood at 22.6%, and absolute EBITDA grew 8% year-on-year to ₹4,089 crore. Reported PAT remained flat year-on-year due to one-off tax-related gains in the base period. Looking at the first half of the fiscal year, Turnover reached ₹35,255 crore with 12% USG and 6% UVG.

Dividend Announcement and Strategy

The Board of Directors has approved an interim dividend of ₹19 per share for the financial year ending March 31, 2027. The company also unveiled its ‘Winning In New India’ strategy, focusing on capturing growth opportunities across consumption, premiumisation, market making, and new spaces. This strategy is underpinned by a value creation model focused on generating fuel and stepping up investment for growth, leveraging its scale, portfolio breadth, and executional capabilities. Key actions during the quarter included investing in brand desirability, building a future-fit Go-to-Market approach, and expanding into new growth areas like the protein segment with Horlicks Protein Powder.

Segment Performance and Outlook

Home Care delivered strong performance with 22% USG, driven by double-digit UVG, particularly in Fabric Wash. Beauty & Wellbeing saw double-digit growth of 16% USG, with Hair Care and Skin Care & Colour Cosmetics performing well. Personal Care registered 9% USG, with strong performance in Skin Cleansing and Oral Care seeing double-digit growth from premium innovations. Foods segment achieved 9% USG, with packaged foods also delivering double-digit growth. The company anticipates the underlying demand environment to remain resilient, supported by healthy macro indicators, and remains confident of growing ahead of the market. Commodity inflation is expected to remain elevated, with medium-term EBITDA Margin projected to be within the 22% to 24% range.

Source: BSE

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