Hindustan Unilever reported a robust 5% Underlying Sales Growth (USG) for the quarter ending December 31, 2025, supported by a 4% Underlying Volume Growth (UVG). The company highlighted strategic progress, including the completion of the Ice Cream business demerger. Management emphasized focus on volume-led growth, strategic brand building via the SASSY framework, and accelerating investment in high-growth channels like quick commerce.
Hindustan Unilever Limited held its Earnings Call on February 12, 2026, to discuss the financial results for the quarter ended December 31, 2025. The leadership team, including Ms. Priya Nair (CEO & MD) and Mr. Niranjan Gupta (CFO), outlined both macroeconomic tailwinds and proactive internal strategy execution driving performance.
Operating Environment and Financial Highlights
Priya Nair noted a steady improvement in underlying demand, supported by easing food inflation and recovering consumer confidence. Macro policies remain supportive of consumption growth moving forward.
Financially, the results reflect the continuing business, excluding the recently demerged Ice Cream operations:
- Underlying Sales Growth (USG): 5%, broad-based across all categories.
- Underlying Volume Growth (UVG): 4%, cited as the highest UVG recorded in the last 12 quarters.
- EBITDA Margin (ex-Ice Cream): 23.3%, within the guided range.
- Profit After Tax (PAT) before exceptional items: Grew 1% year-on-year to Rs. 2,562 crores.
- Reported PAT: Grew 121% year-on-year to Rs. 6,603 crores, impacted by one-off gains from the Ice Cream demerger and OZiva fair valuation.
Mr. Niranjan Gupta confirmed that the consolidated EBITDA margin is expected to remain around the guided range as growth remains the number one priority, requiring sustained investment.
Strategic Priorities and Execution
HUL is reshaping its growth engines through four core priorities: deeper consumer segmentation, crafting modern and relevant brands, future-proofing the sales engine, and doubling down on fewer, bigger bets.
Building SASSY Brands
Priya Nair elaborated on building ‘SASSY brands,’ exemplified by the TRESemmé hydramatrix range, which features science-backed ingredients and contemporary, inclusive marketing.
Channel Transformation and Quick Commerce
The company is heavily investing in fast-growing channels, specifically quick commerce (Q-commerce), which currently contributes about 3% of the business but is doubling every quarter. HUL established a dedicated Q-commerce organization to enhance decision-making, supply chain agility, and data integration. Availability in this channel improved by 1,400 basis points over the past year.
Portfolio Rotation and M&A Activity
The organization is actively rotating its portfolio toward high-growth areas:
- The Board approved the acquisition of the remaining 49% stake in OZiva for Rs. 824 crores, strengthening the Health & Wellbeing segment.
- HUL is divesting its minority stake in Nutritionalab Private Limited for Rs. 307 crores.
- The Ice Cream demerger was concluded in December, with the resulting entity (KWIL) listing on February 16th.
Segment Performance Highlights
Home Care
Delivered 3% USG, reflecting prior price reductions. The segment achieved its highest ever market share, driven by strong double-digit UVG in Household Care and acceleration in the Liquids portfolio (laundry liquids, fabric conditioners).
Beauty & Wellbeing
Delivered 6% USG. Hair Care saw double-digit growth led by premium brands like Dove and TRESemmé. While the Skin Care winter portfolio performed well, the summer portfolio faced challenges, though management expects a bounce-back as seasons shift.
Personal Care
Delivered 6% USG, with strong double-digit growth in premium Skin Cleansing (Pears, Dove) and Oral Care. Deodorants also grew in double-digits on a small base.
Foods
Delivered 6% USG, driven by high-single-digit UVG across the board. Lifestyle Nutrition grew high-single digits, benefiting from the launch of Horlicks Superfoods in two states. Packaged Foods saw high-single-digit UVG, supported by Kissan extensions.
Outlook
The outlook suggests a step-up in growth, moving with speed on strategic priorities. Management expects the operating environment to remain conducive for consumption recovery. HUL guided that FY’27 top line will be better than FY’26, with the second half of FY’26 expected to be better than the first half.
Source: BSE
