Hindustan Unilever Reports 2% Revenue Growth and Declares Rs. 19 Interim Dividend

Hindustan Unilever Limited (HUL), a leading fast-moving consumer goods company, has announced its financial results for the quarter ended September 30, 2025. The company reported a modest growth in revenue and profit, along with declaring an interim dividend.

Financial Highlights

HUL reported total sales of Rs. 16,061.00 crores for the quarter, representing a 2% growth compared to the same period last year. The company's profit after tax stood at Rs. 2,694.00 crores, up 4% from the previous year.

Here's a breakdown of key financial metrics:

Metric	Q2 FY2026	YoY Change
Total Sales	Rs. 16,061.00 crores	+2%
Profit After Tax	Rs. 2,694.00 crores	+4%
EBITDA Margin	23.20%	-90 bps

The company's EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) margin declined by 90 basis points to 23.20% compared to the same quarter last year.

Dividend Declaration

The Board of Directors has declared an interim dividend of Rs. 19.00 per equity share for the financial year ending March 31, 2026. The record date for determining shareholder eligibility is set for November 7, 2025, with the payment date scheduled for November 20, 2025.

Exceptional Items

HUL reported several exceptional items during the quarter:

A one-off positive impact of Rs. 273.00 crores resulting from the resolution of tax matters between UK and Indian authorities.
Restructuring expenses of Rs. 51.00 crores.
Acquisition-related costs of Rs. 38.00 crores.

Business Restructuring

The company announced that its shareholders have approved the demerger of HUL's ice cream business into Kwality Wall's (India) Limited. This strategic move is subject to regulatory approvals, including clearance from the National Company Law Tribunal under Sections 230 and 232 of the Companies Act, 2013.

Segment Performance

HUL's performance across various segments for the quarter was as follows:

Segment	Revenue	YoY Growth
Home Care	Rs. 5,664.00 crores	-2%
Beauty & Wellbeing	Rs. 3,732.00 crores	+9%
Personal Care	Rs. 2,425.00 crores	-5%
Foods	Rs. 3,869.00 crores	-4%
Others (includes Exports)	Rs. 551.00 crores	0%

The Beauty & Wellbeing segment showed the strongest growth, while other segments experienced slight declines or remained stable.

Hindustan Unilever continues to navigate a challenging market environment, focusing on strategic initiatives to drive growth and maintain its market position in the FMCG sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.51%	+1.69%	+3.28%	+7.47%	-2.05%	+21.51%

Hindustan Unilever Ltd. (HUL), a leading FMCG company in India, has announced its plans to release its second quarter results on October 23. The company's Board of Directors is scheduled to meet on this date to review and approve the financial performance for the period ending September 30.

Key Points

Results Announcement: October 23
Period Covered: Quarter ending September 30
Board Meeting Agenda:
- Review of unaudited standalone and consolidated financial results
- Consideration of interim dividend proposal

Expected Financial Performance

Analysts anticipate subdued quarterly results for HUL:

Sales are expected to rise by just 1% year-on-year
Profit may decline by 5%

These projections reflect challenges stemming from recent GST rate cuts, which have affected nearly 40% of HUL's product portfolio, including soaps, shampoos, detergents, toothpaste, and packaged foods. The GST transition has led to channel de-stocking and inventory realignment issues.

Factors Impacting Performance

Extended monsoon disrupting sales momentum, particularly affecting skin care and seasonal products
Weak underlying demand and channel destocking weighing on volumes
Margin pressure with EBITDA margin expected to fall by 140 basis points to around 22.10%
Lower prices passed to consumers and increased promotional spending to clear older inventory

Raw Material Costs

Mixed trends observed
Palm oil and crude-based inputs remain volatile
Tea prices have softened
Coffee prices stay near 52-week highs

Analyst Outlook

Despite the anticipated weak quarterly performance, analysts view the challenges as largely temporary. They expect recovery in coming quarters once the GST impact normalizes. Brokerages remain positive on HUL's medium-term prospects, citing:

Structural demand recovery
Softer input costs
GST-driven price rationalization that could boost affordability

Financial Results Review

The Board meeting will focus on examining the unaudited financial statements, both on a standalone and consolidated basis. This comprehensive review will provide insights into HUL's performance across its various business segments and subsidiaries.

Dividend Consideration

The Board will also evaluate a proposal for an interim dividend payment. This consideration underscores HUL's commitment to delivering value to its shareholders, although the final decision will depend on the company's financial performance and future outlook.

Earnings Call

HUL has scheduled an earnings call for 4:00 PM on the same day, providing an opportunity for investors and analysts to gain deeper insights into the company's performance and future strategies.

Trading Window Closure

In compliance with regulatory requirements, HUL has implemented a trading window closure for designated persons:

Closure Start Date: September 15
Expected Reopening: October 27

This measure ensures fair trading practices and prevents insider trading during the sensitive period leading up to the results announcement.

Recent Stock Performance

HUL's stock has shown mixed performance across different time frames:

Time Period	Performance
Past 5 trading sessions	+2.78%
Year-to-date	+11.45%
Past year	-3.49%

The stock closed at Rs 2,588.00 on Tuesday, trading within its 52-week range of Rs 2,136.00 to Rs 2,750.00.

Investors and market watchers will be keenly awaiting HUL's Q2 results, which are expected to provide valuable insights into the company's performance amidst evolving market conditions, GST-related challenges, and consumer trends in the FMCG sector.