Hindustan Unilever Limited FY26 Comprehensive Report Summary

Reporting Period: Financial Year 2025-26 (April 2025 - March 2026)

Financial Performance Highlights

HUL reported strong financial results for FY26 with consolidated profit of ₹15,059 crore, representing 41% year-on-year growth from ₹10,671 crore in FY25. This includes ₹4,407 crore from discontinued operations related to the ice cream business demerger. Revenue from operations grew 5.1% to ₹64,468 crore, with underlying sales growth of 5% and volume growth of 4%. The company maintained a healthy EBITDA margin of 23.6% with profit after tax from continuing operations at ₹10,652 crore.

Strategic Business Developments

The company executed significant portfolio changes including the demerger of its ice cream business to Kwality Wall's India Limited effective 1st December 2025, resulting in a gain of ₹4,611 crore. HUL acquired 90.5% stake in Uprising Science Private Limited (Minimalist brand) for ₹170 crore and completed 100% acquisition of Zywie Ventures Private Limited (OZiva brand). The company also announced a ₹2,000 crore manufacturing capacity expansion plan over two years focused on premium Beauty & Wellbeing and Home Care categories.

Dividend Distribution

HUL declared total dividends of ₹10,103 crore for FY26, including an interim dividend of ₹19 per share (₹4,464 crore) and proposed final dividend of ₹22 per share (₹5,169 crore) subject to shareholder approval at the AGM scheduled for 30th June 2026. The dividend payout ratio stood at 91% excluding special dividends.

Segment Performance

  • Home Care: ₹23,672 crore revenue with 4% underlying sales growth and high-single digit volume growth
  • Beauty & Wellbeing: ₹14,990 crore revenue with 6% growth driven by Hair Care, Premium Skin Care and Health & Wellbeing
  • Personal Care: ₹9,564 crore revenue with 4% growth and double-digit growth in premium bars and bodywash
  • Foods: ₹14,061 crore revenue with 5% growth and mid-single digit volume growth

ESG and Sustainability Performance

HUL demonstrated strong environmental performance with 97% of operations powered by renewable energy (16 sites at 100%), 99% reduction in Scope 1 & 2 emissions per tonne of production since 2008, 58% reduction in water usage, and 53% reduction in waste generated. The company achieved 64.5% sustainable sourcing of 12 key agricultural crops. Social metrics showed 44% women in managerial positions, 87.3% employee training coverage, and empowerment of over 200,000 rural women through Project Shakti.

Governance and Leadership

Priya Nair was appointed as CEO & MD effective 1st August 2025, succeeding Rohit Jawa, while Niranjan Gupta was appointed as Executive Director, Finance & CFO effective 1st November 2025. The board composition included 9 directors with 3 women directors and 5 independent directors. The company maintained strong regulatory compliance with clean audit opinions from Walker Chandiok & Co LLP and Parikh & Associates.

Regulatory Compliance and Disclosures

The Integrated Annual Report and Business Responsibility and Sustainability Report were submitted to exchanges in compliance with SEBI Listing Regulations. The reports included comprehensive disclosures across financial performance, governance, environmental metrics, and social impact. Contingent liabilities stood at ₹2,405 crore for income tax matters and ₹526 crore for indirect tax disputes.

Digital Transformation and Innovation

HUL advanced its digital capabilities with AI-enabled content ecosystem, Shikhar e-B2B app covering 85% of general trade business, and quick commerce channel that doubled turnover in FY26 with 1,400 bps service level improvement. Five factories were recognized as Advanced Fourth Industrial Revolution Lighthouses by World Economic Forum.

Forward-looking Statements

The report contains forward-looking statements based on current expectations and assumptions, with actual results subject to various risks and uncertainties including market conditions, regulatory changes, and economic factors.