Hindustan Unilever Reports 7% Volume Growth in Q2 FY27 Results
HUL achieves highest volume growth in years despite flat net profit and margin contraction.
1Record Volume Growth Achieved
Hindustan Unilever reported a 7% underlying volume growth for the September quarter of FY27. This performance marks the highest volume increase since the first quarter of FY22, when the company reached 9%. Despite this operational milestone, the company's shares fell 2.9% to ₹1,765.50 on the National Stock Exchange following the announcement.
2Financial Performance and Profitability
Consolidated net profit remained nearly flat at ₹2,796 crore compared to ₹2,791 crore in the previous year. The company attributed this stagnation to one-off tax-related gains of ₹273 crore recorded in the base period. Excluding these exceptional items, profit after tax grew by 9% during the reported three-month period ending 30 September.
3Revenue and Margin Dynamics
Revenue increased by 14.7% to reach ₹18,037 crore, with underlying sales growth hitting 15%, a 14-quarter high. However, the Ebitda margin narrowed by 140 basis points to 22.6% year-on-year. Total Ebitda grew by 8% to ₹4,089 crore, reflecting the impact of commodity inflation and ongoing investments in long-term business capabilities.
4Home Care Segment Performance
The home care segment, anchored by Surf Excel, delivered a strong 22% underlying sales growth. This performance was driven by double-digit volume growth across fabric-wash liquids, powders, and bars. Household care also accelerated, with Vim Liquids continuing to outperform the market through a consistent volume-led growth trajectory during the September quarter.
5Beauty and Personal Care
Beauty and wellbeing segments grew 16% in underlying sales, supported by double-digit volume increases in hair care, skin care, and colour cosmetics. Personal care saw 9% sales growth, with skin cleansing benefiting from price hikes. Market development actions for brands like Pears and Dove Bars successfully supported this volume-led expansion strategy.
6Foods and Brand Acquisitions
The foods segment recorded 9% underlying sales growth, though volume growth remained in the low-single digits. Packaged foods and coffee showed strong performance. Regarding recent acquisitions, the health brand Oziva reported subdued results, while Minimalist accelerated its growth trajectory by introducing innovations within emerging demand spaces in the Indian consumer market.
7Strategic Outlook for FY27
CEO Priya Nair emphasized that the Indian economy remains resilient, supported by healthy macro indicators. HUL expects FY27 to outperform FY26, driven by the 'Winning in New India' strategy. The company anticipates that commodity inflation will persist in the short term but remains committed to delivering competitive, volume-led profit growth through transformation.
8Market Reaction and Dividends
Investors reacted cautiously to the results, leading to a 2.9% drop in share price on the NSE. Despite the market volatility, the company declared an interim dividend of ₹19 per share. Analysts had estimated revenue at ₹17,582.4 crore and net profit at ₹2,784.4 crore, closely aligning with the actual reported figures.
Original article: mint - companies — Hindustan Unilever Reports 7% Volume Growth in Q2 FY27 Results