HUL Raises EBITDA Margin Forecast to 23%-24%, Anticipates Stronger Performance in Second Half

Hindustan Unilever Limited (HUL), a leading FMCG giant in India, has revised its EBITDA margin forecast upwards and expressed optimism about its future performance. The company has increased its EBITDA margin forecast to 23%-24%, up from the previous guidance of 22%-23%, representing an upward revision of approximately 1 percentage point at the midpoint of the guidance range. Additionally, HUL anticipates that the second half may deliver better results compared to the first half, signaling potential growth and improved market conditions.

Performance Overview

HUL reported a consolidated Underlying Sales Growth (USG) of 2% for the quarter, with a flat Underlying Volume Growth (UVG). The company's performance during this period was influenced by transitory impacts of GST changes and prolonged monsoon conditions in parts of the country.

Financial Highlights

Metric	Q2	Q2 Previous Year	Change
Total Sales	₹16,061.00	₹15,747.00	+2.00%
EBITDA	₹3,729.00	₹3,793.00	-1.70%
EBITDA Margin	23.20%	24.10%	-90 bps
Profit After Tax	₹2,694.00	₹2,595.00	+3.80%

The company's EBITDA margin declined by 90 basis points year-on-year, primarily due to higher investments in the business. Despite this, Profit After Tax grew by 3.80%, driven by a one-off positive impact from the resolution of prior years' tax matters between UK and Indian tax authorities.

Segment Performance

Home Care: Delivered mid-single digit UVG, offset by price reductions taken in previous quarters.
Beauty & Wellbeing: Achieved 5% USG, driven by Skin Care and Health & Wellbeing segments.
Personal Care: Turnover growth was flat, impacted by GST rate transition.
Foods: Reported 3% USG with low-single digit UVG, supported by double-digit growth in Beverages.

Future Outlook

Priya Nair, CEO and Managing Director of HUL, commented on the company's future strategy: "We are determined to accelerate our portfolio transformation by radically sharpening our consumer segmentation, being bolder in transforming our core brands to make them more modern, desirable and youthful, future-proofing our marketing & sales capabilities by enabling superior online brand discovery & fulfillment and investing disproportionately to scale our high-growth demand spaces."

The company believes that these key priorities, coupled with a supportive macroeconomic environment, may position HUL to accelerate volume-led growth in the mid-to-long term.

Dividend Announcement

The Board of Directors has declared an interim dividend of ₹19.00 per equity share. The record date for determining shareholder eligibility is set for November 7, with the dividend payment scheduled for November 20.

As HUL navigates through the challenges of GST reforms and changing market dynamics, the company's optimistic outlook for the second half and the upward revision of its EBITDA margin forecast suggest a potential rebound in performance. Investors and market watchers will be keenly observing how HUL's strategies unfold in the coming months to drive growth and maintain its market leadership in the competitive FMCG sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.22%	+1.40%	+2.98%	+7.16%	-2.33%	+21.16%

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.