Key Financial Performance

Quarter Ended September 30, 2026:

  • Turnover: ₹18,071 crores
  • Underlying Sales Growth (USG): 15% (highest in 14 quarters)
  • Underlying Volume Growth (UVG): 7%
  • EBITDA: ₹4,089 crores (8% YoY growth)
  • EBITDA Margin: 22.6% (within guided range of 22-24%)
  • PAT before exceptional items: ₹2,795 crores (9% YoY growth)
  • Reported PAT remained same as last year due to one-off tax-related gains of ₹273 crores in base period

First Half FY27 Performance:

  • Turnover: ₹35,255 crores
  • Underlying Sales Growth: 12%
  • Underlying Volume Growth: 6%
  • PAT before exceptional items grew 9%

Dividend Declaration

The Board approved an interim dividend of ₹19 per share for the financial year ending March 31, 2027.

Segment Performance Details

Home Care:

  • USG: 22% with double-digit UVG
  • Fabric Wash delivered strong double-digit broad-based growth across bars, powders and liquids
  • Household Care accelerated with double-digit, volume-led growth
  • Premiumisation agenda gained momentum with Surf excel Easy Wash scaling well

Beauty & Wellbeing:

  • USG: 16% with double-digit UVG
  • Hair Care accelerated double-digit, volume-led growth across brands and formats
  • Skin Care and Colour Cosmetics delivered double-digit, volume-led growth
  • Premium skin care maintained growth direction with double-digit growth in organised trade
  • Minimalist brand growth accelerated sequentially with expanded offline presence
  • Health & Wellbeing saw subdued performance

Personal Care:

  • USG: 9%
  • Skin Cleansing delivered double-digit growth
  • Market development actions in Pears and Dove bars drove double-digit volume-led growth
  • Bodywash strengthened penetration and market leadership
  • Oral Care reported low-single digit growth but premium innovations delivered double-digit growth

Foods:

  • USG: 9% with low-single digit UVG
  • Coffee delivered high-single digit growth driven by volumes
  • Tea performance moderated by inflation, particularly in mass tea
  • Premium tea innovations like Red Label Instant Tea scaled well
  • Lifestyle Nutrition delivered double-digit growth driven by execution and market development
  • Horlicks expanded into protein segment with Horlicks Protein Powder launch
  • Packaged Foods delivered double-digit broad-based growth
  • Kissan condiments relaunched with contemporary packaging and sharper proposition

Strategic Initiatives

The company unveiled its 'Winning In New India' strategy focusing on four growth pools:

1. Consumption

2. Premiumisation

3. Market making

4. New spaces

Key execution actions during the quarter:

  • Investment behind brand desirability (e.g., Simple barrier repair range for sensitive skin)
  • Future-fit Go-to-Market expansion: Added 30,000 outlets in general trade, doubled asset deployment in modern trade
  • Technology-led capabilities in e-commerce and quick commerce driving service level improvements
  • Extension into new spaces: Horlicks Protein Powder launch in fast-growing protein segment
  • Agile procurement and supply chain capabilities ensuring continuity in input materials

Operational Highlights

  • Rural growth showed sequential increase with both urban and rural growing
  • Growth broad-based across categories, channels, and geographies
  • Company improved market shares at overall and Home Care levels
  • HUL named 'Top Supply Chain Icon' by Institute of Supply Chain Management in 2026 ranking

Management Commentary on Market Conditions

  • Global geopolitical environment volatile, commodity prices remained elevated
  • Indian economy demonstrated resilience with GDP growth of 7.8% in first quarter
  • High frequency economic indicators remained healthy in September quarter
  • Demand conditions remained positive, supporting favorable consumption environment
  • Commodity inflation expected to remain elevated in medium term

Outlook

  • Underlying demand environment remains resilient supported by healthy macro indicators
  • Medium-term EBITDA Margin expected to remain within guided range of 22% to 24%
  • Focus remains on delivering competitive volume-led revenue and profit growth
  • Portfolio structurally positioned for Gross Margin improvement in medium-term (3-5 year horizon)

Q&A Session Highlights

Volume Growth & Demand Outlook:

  • Sequential improvement in volume momentum observed
  • Rural demand showing sequential increase
  • Growth broad-based across categories, channels, and geographies

Pricing & Margin Strategy:

  • Calibrated price increases taken only to cover absolute impact of higher costs
  • Strategy protects consumer franchise, sustains healthy volumes and strengthens market position
  • Gross margin contraction of ~400 bps YoY, but EBITDA margin dropped only 140 bps
  • Significant inflation borne in June and September quarters

Category-specific Discussions:

  • Beauty & Wellbeing growth driven by portfolio transformation, acquisitions, and execution intensity
  • Home Care margin pressure due to input cost lag (petrochemical-based products)
  • Lifebuoy facing market shift from mass to premium, hygiene to beauty
  • Health & Wellbeing segment (OZiva) showing strong 2-year CAGR despite recent subdued performance

Channel Performance:

  • Quick commerce beneficial for premium products targeting affluent consumers
  • Working with quick commerce players to grow category repertoire
  • Supply to quick commerce mostly direct

Availability

The transcript is available on the Company's website at https://www.hul.co.in/investors/results-and-presentations/quarterly-results-and-webcasts/september-quarter-2026-results/