HUL Q2 Results: Profit Rises 4% to ₹2,790 Crore; Volumes Grow 7%

Hindustan Unilever (HUL) on Wednesday reported a 4% increase in consolidated net profit to ₹2,790 crore for the quarter ended September. HUL Q2 results showed underlying sales growth of 15%, a 14-quarter high.

The company’s net profit attributable to shareholders rose from ₹2,685 crore a year earlier, according to its results announced on October 28. Turnover rose 14.8% to ₹18,071 crore. Underlying volumes were up 7%.

Profit after tax before exceptional items increased by close to 9% to ₹2,795 crore. Reported net profit, including non-controlling interests, was almost unchanged at ₹2,796 crore because of exceptional items in the previous year, the company said.

HUL Q2 results: margins narrow on input costs

EBITDA rose 8% to ₹4,089 crore. However, the EBITDA margin fell 140 basis points to 22.6% from 24% last year. Overall expenses grew 15.9% to ₹14,574 crore, faster than sales, as input costs remained high.

The board declared an interim dividend of ₹19 per share for FY27. The record date is November 12, and the dividend will be paid on November 25.

Turnover was ₹35,255 crore for H1 FY27, with underlying sales growth of 12% and volumes up 6%. EBITDA grew 8% and profit before exceptional items rose 9% year-on-year.

Home care was the standout segment, with underlying sales growth of 22% and double-digit volume growth. Revenue for the segment rose to ₹6,878 crore.

Beauty and wellbeing grew 16% on an underlying basis, generating revenue of ₹4,319 crore with double-digit volume growth. Personal care and foods each saw 9% underlying sales growth. Volumes were flat in personal care and grew in low single digits in foods.

HUL said it had reallocated its advertising budget across the portfolio. It cut home care advertising by about ₹200 crore to keep price increases low for consumers. Spending on personal care and foods rose by around ₹100 crore.

Inflation clouds the FMCG demand outlook

Management said demand remained resilient but warned that costs would stay high. “Commodity inflation is expected to remain elevated in the short term,” chief financial officer Niranjan Gupta said.

CEO and managing director Priya Nair said the company would try to price just enough to cover its costs. She said the rural market had improved quarter after quarter, while urban growth remained steady.

Nair said the 5–6% rise in minimum support prices and higher spending on rural employment were lifting rural wages. She said a below-normal monsoon would not have much impact, as agriculture makes up less than 15% of India’s GDP.

HUL expects FY27 to be better than FY26, helped by changes to its portfolio and sales channels. It kept its medium-term consolidated EBITDA margin guidance at 22–24%.

Why it matters for business leaders

Since Hindustan Unilever is one of India’s biggest FMCG companies, changes in its sales are seen as an indicator of consumer spending. Underlying volume growth of 7% suggests people are still buying everyday essentials despite high inflation.

However, the squeezed margins in the HUL Q2 results could be a concern for consumer-facing companies and their suppliers. Retail inflation rose to 5.54% in September. Companies will have to judge how far they can raise prices without hurting volumes.

HUL has also been increasing the share of higher-margin products such as liquid detergents and premium skincare. Its operating cash flow rose 30% year-on-year in the first half, which should give it room to fund expansion and dividends.

Investors will watch whether price increases in the coming quarters affect volumes, and whether margins stay in line with guidance. Fernando Fernandez, CEO of parent Unilever, said on the analyst call that HUL had gained significant market share in its key categories.

For more on how consumer companies are faring, read our coverage of Tata Consumer’s Q2 results and September retail inflation. HUL’s full disclosure is in its September quarter 2026 results presentation.

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Internal links used: https://ceoreviewmagazine.com/company-spotlight/tata-consumer-q2-results-profit/, https://ceoreviewmagazine.com/news/india-retail-inflation-september-2026-cpi-5-54-percent/

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Note: Fact & grammar check done — 51 corrections. Sources conflict on the one-off items behind flat reported profit: HUL’s presentation cites ₹273 crore of one-off tax gains in the base period; one Business Standard report attributes the ₹273 crore to the current quarter and another cites a ₹97 crore discontinued-operations loss in the year-ago quarter. The article uses the safer wording “exceptional items in the previous year” and omits the amounts. Rural employment scheme name differs across reports (MGNREGA vs VB-G RAM G), so it is described generically. Retail inflation figure (5.54%) is from our own earlier post on CPI data. Reports of the share hitting a six-year low were not verified and are not used.

Sources (fact-check):

• https://www.hul.co.in/files/hul-sq-26-results-presentation.pdf
• https://www.business-standard.com/companies/quarterly-results/hul-q2-results-net-profit-rises-sales-growth-ebitda-margin-dividend-126102800298_1.html
• https://www.business-standard.com/companies/quarterly-results/hul-q2-fy27-net-profit-sales-volume-growth-home-care-126102800363_1.html
• https://news.webindia123.com/news/Articles/Business/20261028/4516239.html