Hindustan Unilever Limited delivered its highest growth in 13 quarters for the quarter ended June 30, 2026, reporting an underlying sales growth (USG) of 10% and turnover of ₹17,184 crore. The performance was driven equally by volume and price increases, with underlying volume growth (UVG) standing at 5%. This result signals strong consumer demand resilience despite global geopolitical volatility and persistent commodity inflation, reinforcing the company’s market leadership across key categories.

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. While operational metrics improved significantly, reported Profit After Tax (PAT) declined 2% year-on-year to ₹2,680 crore. This decline was attributed to a one-off tax credit received in the corresponding quarter of FY25 (JQ'25). Excluding exceptional items, PAT grew 9% year-on-year to ₹2,731 crore. EBITDA rose 8% to ₹3,947 crore, with margins remaining within the guided range at 23.0%, despite a 40 basis point compression year-on-year.

Segment Performance

Home Care emerged as the top performer with 14% USG, its highest growth in three years, supported by high-single digit UVG. Fabric Wash accelerated with double-digit USG, driven by bars, powders, and liquids. Household Care also posted double-digit growth, led by Vim Liquids. Beauty & Wellbeing recorded 12% USG, fueled by double-digit growth in Premium Hair Care and Skin Care. Minimalist showed sequential acceleration, while new launches included Liquid I.V.’s sugar-free variant and Vaseline’s Gluta Hya Smoothing Body Lotion.

Personal Care reported 4% USG, primarily pricing-led, as palm oil inflation persisted for the second consecutive year. Premium Bars delivered competitive double-digit volume-led growth, and Bodywash continued its double-digit momentum. Foods delivered 7% USG, driven by mid-single digit UVG. Coffee saw double-digit volume-led growth, with RTD and Bru Gold scaling up. Lifestyle Nutrition maintained double-digit growth, with Boost surpassing the ₹1,000 crore annual turnover milestone based on trailing 12-months.

What the Numbers Show

The divergence between operational profitability and reported net profit highlights the impact of non-recurring items on bottom-line metrics. While EBITDA grew 8% and PAT before exceptional items grew 9%, the reported PAT fell 2% solely due to the absence of a one-off tax credit from the prior year. This indicates that core operational efficiency improved, with margin discipline maintained despite input cost pressures. Furthermore, the shift towards premiumization is evident in Personal Care and Beauty segments, where volume-led growth in premium brands like Dove and Pears offset broader category softness, suggesting successful portfolio transformation.

Priya Nair, CEO and Managing Director, stated that the Indian economy demonstrated resilience supported by proactive fiscal and monetary policies. She noted that HUL’s investments in market development and channel expansion are building a future-fit business. The company expects FY27 to be better than FY26, driven by portfolio and channel transformation, although commodity volatility and inflationary pressures are expected to persist in the short term.

Hindustan Unilever Limited reported its strongest performance in 13 quarters for the quarter ended June 30, 2026, driven by a balanced mix of volume and price growth. The company's consolidated turnover reached ₹17,184 crore, representing a 10% underlying sales growth (USG). However, underlying volume growth (UVG) came in at 5%, missing analyst estimates of 6-7%, raising questions about the pace of demand recovery. The Board of Directors, led by Managing Director and CEO Priya Nair, approved the unaudited financial results on July 28, 2026. The company also flagged that short-term inflationary pressures are expected to persist, adding to near-term margin headwinds.

Key Financial Metrics

Profitability metrics showed mixed trends as the company navigated input cost pressures. EBITDA grew year-on-year to ₹39.5B from ₹36.4B, but fell short of the analyst estimate of ₹39.81B. The EBITDA margin came in at 22.76%, declining from 23.10% in the year-ago period and missing the estimate of 23.1%. Consolidated net profit after tax (PAT) declined to ₹26.7B against ₹28B in the year-ago period, also falling short of the analyst estimate of ₹28B. Excluding exceptional items, PAT grew 9% to ₹2,731 crore, reflecting robust operational earnings.

The following table summarizes the key financial performance indicators for the quarter:

Segment Performance

Home Care emerged as the standout performer, delivering a 14% USG—the highest growth in three years—driven by high-single-digit volume growth. Fabric Wash accelerated with double-digit USG, while Household Care also posted double-digit gains. Beauty & Wellbeing recorded 12% USG, fueled by double-digit growth in Premium Skin Care and Hair Care. Minimalist, a key premium brand, delivered double-digit growth with accelerating momentum.

Personal Care reported a modest 4% USG, largely driven by pricing actions as palm oil inflation persisted for the second consecutive year. Skin Cleansing saw mid-single-digit USG, led by competitive double-digit volume-led growth in Premium Bars. Foods delivered 7% USG, with Coffee achieving double-digit volume-led growth. Boost surpassed the ₹1,000 crore annual turnover milestone on a trailing twelve-month basis.

What the Numbers Show

The divergence between operational profitability and bottom-line net profit highlights the impact of non-recurring items on headline figures. While reported PAT declined, the 9% growth in PAT before exceptional items underscores the strength of core operations. The miss on volume growth estimates, with actual UVG at 5% against the 6-7% forecast, signals that consumer demand recovery may be more gradual than anticipated. The EBITDA margin at 22.76% also fell short of both the prior year's 23.10% and the analyst estimate of 23.1%, with the company indicating that short-term inflationary pressures are expected to persist. Palm oil inflation, now in its second consecutive year, remains a key cost headwind for the Personal Care segment.

The statutory auditors, Walker Chandiok & Co LLP, issued an unmodified limited review report on the standalone and consolidated financial results. The Audit Committee reviewed the results on July 27, 2026, before final board approval. Hindustan Unilever continues to focus on market development and portfolio transformation to drive future volume-led revenue growth.