Hindustan Unilever Ltd (HUL) has announced its Q2 FY26 earnings, posting a 4 percent year-on-year rise in consolidated net profit to Rs 2,694 crore for the July-September quarter. The increase was aided by a one-off tax gain of Rs 184 crore from the resolution of prior years’ tax matters between the UK and Indian tax authorities.

However, profit after tax before exceptional items declined 4 percent year-on-year, reflecting the underlying business performance amid external disruptions.

Revenue and Sales Growth

HUL’s revenue from operations grew 2 percent year-on-year to Rs 16,061 crore. The company’s underlying sales growth (USG) stood at 2 percent, while underlying volume growth (UVG) remained flat.

The performance during the quarter was impacted by temporary GST rate changes and extended monsoon conditions across several regions, which influenced consumer buying patterns.

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Margins and Investments

The company’s EBITDA margin came in at 23.2 percent, down 90 basis points from the same period last year. The decline was attributed to higher investments in the business, aimed at strengthening brand presence and driving long-term growth.

Dividend Declaration

In line with its shareholder-friendly approach, HUL’s Board of Directors declared an interim dividend of Rs 19 per share for the financial year ending March 31, 2026.

Management Commentary

Priya Nair, CEO and Managing Director of HUL, described the quarterly performance as a “competitive performance” despite transitory disruptions. She highlighted the recent GST reforms as a positive step expected to boost consumption and consumer sentiment once the markets stabilize.

Nair emphasized the company’s focus on portfolio transformation, including sharper consumer segmentation and enhanced digital brand engagement to accelerate growth and stay competitive in a dynamic FMCG landscape.

Key Takeaways

Net profit rises 4% YoY to Rs 2,694 crore, aided by a one-off tax gain of Rs 184 crore.
Revenue grows 2% YoY to Rs 16,061 crore.
Underlying sales growth at 2%, with flat volume growth.
EBITDA margin at 23.2%, down 90 basis points due to increased investments.
Interim dividend declared at Rs 19 per share.
Management emphasizes GST reforms, portfolio transformation, and digital engagement to drive future growth.

Conclusion

HUL’s Q2 FY26 results reflect a balanced performance, managing growth despite external challenges like GST changes and seasonal impacts. With continued investments, digital initiatives, and portfolio transformation, the company aims to strengthen its market position and consumer connect for sustained growth in the coming quarters.

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