Hindustan Unilever Limited delivered robust financial performance in the quarter ended 31st December 2025, reporting 6% revenue growth driven by strong underlying fundamentals and strategic initiatives. The company achieved 5% underlying sales growth and 4% underlying volume growth, marking its highest volume growth performance in the last 12 quarters.

Financial Performance Highlights

The company's financial metrics demonstrated solid execution across key parameters:

EBITDA margins remained healthy at 23.3%, staying within the company's previously guided range. The reported profit after tax of Rs. 6,603 crores included several one-off impacts from the ice cream demerger and OZiva fair valuation adjustments.

Segment-Wise Performance Analysis

Home Care Segment

Home Care delivered mid-single-digit underlying volume growth with 3% underlying sales growth. The segment achieved its highest ever market share, strengthening the company's leadership position. Fabric wash recorded competitive mid-single digit volume growth, while household care maintained strong momentum with double-digit volume growth.

Beauty & Wellbeing Segment

Beauty & Wellbeing posted 6% underlying sales growth, driven by outstanding performance in hair care and health & wellbeing categories. Hair care delivered double-digit growth supported by high-single digit volume growth, led by premium brands including Dove and TRESemmé.

Personal Care Performance

Personal Care achieved 6% underlying sales growth, led by double-digit growth in premium skin cleansing and oral care categories. The company continued reinforcing market leadership with double-digit growth in bodywash, accelerating market development activities in this category.

Foods Business Results

Foods delivered 6% underlying sales growth with broad-based performance driven by high-single digit volume growth. Tea recorded mid-single digit volume growth, while coffee continued strong double-digit growth momentum supported by both price and volume improvements.

Strategic Portfolio Transformation

The company completed several significant portfolio moves during the quarter:

The Board approved acquiring the remaining 49% stake in OZiva at an investment of Rs. 824 crores, reflecting the brand's strong performance and growth potential in the health & wellbeing segment.

Operational Excellence and Future Focus

The company established a dedicated quick commerce organization to capture the rapidly growing channel opportunity. Quick commerce currently contributes around 3% of business and is doubling every quarter. Service levels improved by 1,400 basis points over the past year, with lead times reducing by 20%.

Management implemented organizational changes to enhance agility and decision-making speed. All business unit heads now report directly to the CEO, eliminating the previous dual reporting structure to accelerate India-focused choices.

Market Outlook and Guidance

Management expressed confidence in sustained growth momentum, citing improving macro conditions including lower inflation, enhanced consumer sentiment, and supportive monetary policies. The company expects the second half of FY26 to perform better than the first half, with FY27 expected to deliver superior performance compared to FY26.

CEO Priya Nair emphasized the company's strategic focus on competitive volume-led revenue growth, supported by consumer segmentation, brand modernization, and enhanced marketing capabilities. The company continues prioritizing growth while maintaining EBITDA margins within the guided range of 22% to 23%.

Hindustan Unilever Limited's board has approved a substantial investment plan to strengthen its position in premium consumer goods categories. The board meeting held on February 18, 2026, resulted in the approval of a ₹2,000 crore capacity expansion initiative targeting high-growth market segments.

Investment Details and Timeline

The comprehensive investment plan encompasses several key parameters designed to enhance the company's manufacturing capabilities:

The board meeting commenced at 10.00 A.M. (IST) and concluded at 07.00 P.M. (IST), indicating extensive deliberations on this strategic initiative.

Strategic Focus Areas

The investment aligns with Hindustan Unilever's strategy of concentrating on fewer, bigger bets while strengthening its presence in high-growth demand spaces. The expansion specifically targets premium categories including:

• Premium skin care products
• Hair care solutions
• Personal care items
• Home care liquids

This strategic focus reflects the company's commitment to meeting evolving consumer preferences in the premium segment, where demand continues to show robust growth patterns.

Technology and Sustainability Integration

The capacity expansion initiative incorporates advanced technological solutions to enhance operational efficiency. The company plans to leverage automation and digital technologies to improve supply-chain efficiency and agility, enabling faster response to changing consumer needs.

Sustainability remains a core component of the expansion plan. All facilities developed under this investment will operate on 100% renewable energy, demonstrating Hindustan Unilever's commitment to environmental responsibility.

Leadership Perspective

Priya Nair, CEO and Managing Director of HUL, emphasized the strategic importance of this investment: "This investment reflects our strategic focus on scaling our brands and creating categories of the future to meet evolving consumer needs. It also underscores our commitment to building a resilient, technology-enabled supply chain that delivers superior value to consumers."

Future-Ready Manufacturing Network

The initiative aims to build a future-ready manufacturing network capable of supporting emerging channels and high-growth formats. By enhancing supply-chain agility through advanced automation, the company expects to improve its responsiveness to market dynamics and consumer preferences.

The investment represents a significant step in Hindustan Unilever's long-term growth strategy, positioning the company to capitalize on opportunities in India's expanding premium consumer goods market while maintaining its commitment to sustainable manufacturing practices.