Hindustan Unilever Limited (HUL) has reported a strong set of financial results for the quarter and full financial year ending March 31, 2026, reflecting resilient demand trends, improved execution, and continued momentum across key product segments. The company’s performance underscores its ability to navigate a dynamic operating environment while delivering steady growth in both revenue and profitability.
Strong March Quarter Performance
During the March quarter, HUL recorded a consolidated turnover of ₹16,207 crore, representing an 8% year-on-year increase. The company achieved an underlying sales growth (USG) of 7%, supported by a 6% rise in underlying volume growth (UVG). Notably, this marks the company’s strongest quarterly growth performance in the past 12 quarters, signaling a sustained recovery in consumption trends and effective market strategies.
Profitability also remained robust. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin stood at 23.7%, improving sequentially by 40 basis points. In absolute terms, EBITDA rose 6% year-on-year to ₹3,841 crore. Profit after tax before exceptional items (PAT bei) reached ₹2,711 crore, up 4% compared to the same period last year. Meanwhile, reported profit after tax (PAT) increased significantly by 20% to ₹3,002 crore, aided by proceeds from the divestment of the company’s stake in Nutritionalab Pvt. Ltd.
Segment-Wise Business Performance
HUL’s growth in the quarter was broad-based, with all major business segments contributing positively.
Home Care Leads with Strong Momentum
The Home Care segment delivered an impressive 9% growth, driven by high-single digit volume expansion. This marks its best performance in the past 11 quarters. Fabric Wash emerged as a key growth driver, registering double-digit growth, while Household Care recorded high-single digit gains.
The liquids portfolio continued its strong double-digit growth trajectory, complemented by improved performance in powders and bars. HUL further strengthened its leadership position in this category through consumer-centric innovations and sustained market development initiatives. Brands such as Surf Excel leveraged high-visibility platforms like the Indian Premier League (IPL) to enhance brand engagement and reach, including partnerships with popular IPL franchises.
Beauty & Wellbeing Driven by Hair Care Excellence
The Beauty & Wellbeing segment recorded 8% USG, supported by mid-single digit volume growth. Hair Care was the standout performer, delivering strong double-digit growth and reinforcing its market leadership position. Growth was broad-based across brands and product formats.
In Skin Care and Colour Cosmetics, robust performance in premium products was partially offset by subdued demand in the mass segment. However, the company continued to gain market share, particularly in emerging distribution channels referred to as “Channels of the Future.”
HUL also expanded its sunscreen portfolio with new product launches such as Lakmē Sun Gel in an affordable ₹10 pack and Vaseline Cloud Soft with SPF 50, aimed at increasing accessibility and penetration. During the financial year, flagship brands Vaseline and Sunsilk each crossed the ₹1,000 crore annual turnover milestone. This milestone brings HUL’s total number of “billion-rupee brands” to 20, highlighting the strength of its brand portfolio.
Personal Care Maintains Steady Growth
The Personal Care segment reported 5% growth during the quarter. Skin Cleansing led the category with high-single digit growth, driven by strong performances from brands like Dove and Lux. Premium soaps and bodywash categories witnessed double-digit competitive growth, supported by ongoing market development initiatives.
Oral Care posted low-single digit growth, although the brand Closeup continued to strengthen its market share. HUL also expanded its presence in high-growth segments through innovations such as Lifebuoy Ice Bath, which offers instant cooling benefits, and Pepsodent Sensitive Care toothpaste designed to address sensitivity while providing cavity protection.
Foods Segment Driven by Nutrition and Coffee
The Foods business posted 5% USG, driven by high-single digit volume growth. Coffee maintained its strong double-digit growth momentum, supported by both volume expansion and pricing actions. Lifestyle Nutrition also performed well, delivering double-digit growth led by popular brands such as Horlicks and Boost.
HUL continued to expand into new consumption spaces, including the fast-growing protein segment with the launch of Horlicks Protein Ready-to-Drink beverages in multiple flavors. Packaged Foods grew at a mid-single digit rate, led by categories such as ketchup, chutneys, and mayonnaise, as well as contributions from Unilever Food Solutions.
In the tea category, growth remained modest with low-single digit volume gains. However, the company advanced its premiumization strategy through the relaunch of Lipton Green Tea, featuring a refreshed and more youthful brand proposition.
Full-Year Financial Performance
For the full financial year 2025–26, HUL reported a turnover of ₹63,763 crore, representing a 5% increase driven by 4% volume growth. EBITDA margin stood at 23.6%, aligning with the higher end of the company’s guidance range.
Profit after tax before exceptional items reached ₹10,324 crore, while reported PAT came in at ₹10,652 crore. Reflecting its strong financial position, the company’s Board of Directors has proposed a final dividend of ₹22 per share, subject to shareholder approval at the annual general meeting (AGM). Combined with the interim dividend of ₹19 per share declared in October 2025, the total dividend payout for the year amounts to ₹9,633 crore.
Management Commentary and Outlook
Priya Nair, CEO and Managing Director of HUL, highlighted that the financial year 2026 benefited from an improved demand environment supported by favorable macroeconomic policies. She emphasized that the company undertook several strategic initiatives during the year to accelerate growth. These included refining its product portfolio, increasing investments to drive consumer demand, strengthening frontline execution, and simplifying organizational structures to enhance agility and speed.
These efforts translated into consistent performance improvements throughout the year, culminating in strong quarterly growth and steady annual gains.
However, the company also acknowledged emerging challenges, including heightened geopolitical tensions that have introduced volatility in commodity prices and currency movements. HUL is addressing these headwinds through disciplined cost management, resilient supply chain operations, and calibrated pricing strategies.
Looking ahead, HUL remains confident in its ability to sustain growth despite external uncertainties. The company is well-positioned with a strong portfolio of trusted brands, a robust financial foundation, and a focus on innovation and operational excellence. Its strategic priorities remain centered on strengthening consumer relationships, expanding market reach, and delivering competitive, sustainable growth over the long term.
Overall, HUL’s performance in both the March quarter and the full financial year reflects a balanced combination of growth, profitability, and resilience, reinforcing its leadership position in India’s fast-moving consumer goods (FMCG) sector.
Source Link:https://www.hul.co.in/
