Hindustan Unilever Limited (HUL) reported a 3.9% year-on-year increase in consolidated net profit attributable to shareholders to ₹2,790 crore for the second quarter of financial year 2026–27. Revenue from operations increased 14.5% to ₹18,226 crore, while underlying volume growth reached 7%, reflecting stronger demand across several of the company’s consumer categories.
The September quarter also delivered HUL’s highest underlying sales growth in 14 quarters, at 15%. Home Care and Beauty and Wellbeing led the performance, while Personal Care and Foods recorded more moderate growth. However, profitability remains an important area to watch: EBITDA increased 8% to ₹4,089 crore, but the EBITDA margin contracted to 22.6% from 24% a year earlier. HUL also declared an interim dividend of ₹19 per equity share.
Key Takeaways
- Net profit: Increased 3.9% year-on-year to ₹2,790 crore.
- Revenue from operations: Rose 14.5% to ₹18,226 crore.
- Underlying sales growth: Reached 15%, the highest in 14 quarters.
- Underlying volume growth: Improved to 7%.
- EBITDA: Increased 8% to ₹4,089 crore.
- EBITDA margin: Declined 140 basis points to 22.6%.
- Dividend: An interim dividend of ₹19 per share was declared.
- Strongest categories: Home Care recorded 22% underlying sales growth, followed by Beauty and Wellbeing at 16%.
HUL Q2 FY27 Results: Financial Performance
HUL’s September-quarter results show that revenue and volumes grew faster than reported net profit. The company benefited from stronger sales across several categories, although higher expenses and margin pressure moderated the conversion of revenue growth into earnings.
Quarterly results comparison
| Financial metric | Q2 FY27 | Q2 FY26 | YoY change |
|---|---|---|---|
| Revenue from operations | ₹18,226 crore | ₹15,919 crore | +14.5% |
| Turnover | ₹18,071 crore | ₹15,742 crore | +14.8% |
| Net profit attributable to shareholders | ₹2,790 crore | ₹2,685 crore | +3.9% |
| Profit after tax before exceptional items | ₹2,795 crore | ₹2,553 crore | +9.5% |
| EBITDA | ₹4,089 crore | ₹3,785 crore | +8.0% |
| EBITDA margin | 22.6% | 24.0% | -140 bps |
| Underlying sales growth | 15% | — | — |
| Underlying volume growth | 7% | — | — |
Source: Business Standard’s Q2 FY27 results report. Figures are rounded where applicable.
The figures require some context. Net profit attributable to shareholders rose nearly 4%, but profit after tax before exceptional items increased 9.5%. The year-on-year comparison was affected by discontinued operations and exceptional items in the previous year’s quarter.
Revenue from operations also differs from turnover because it includes other operating revenue. These figures should not be treated as interchangeable when comparing HUL’s financial performance.
Why HUL’s Volume Growth Matters
Underlying volume growth measures the change in the quantity of products sold, excluding the effect of pricing changes. It is an important indicator for consumer-goods companies because it helps distinguish demand-led growth from revenue increases driven primarily by higher prices.
HUL’s 7% underlying volume growth indicates that the company sold more products on an underlying basis during the quarter. Combined with 15% underlying sales growth, the result points to broad-based momentum across important parts of its portfolio.
The company attributed its performance to brand development, distribution improvements and initiatives designed to strengthen its route to market. Management also said India’s macroeconomic conditions supported a positive consumption environment.
However, stronger volumes do not automatically translate into proportionately higher profits. Product mix, input costs, promotional spending and operating expenses all influence the final result.
Segment-Wise Performance: Home Care Leads
Home Care was HUL’s strongest major category in terms of underlying sales growth, supported by demand across fabric-wash and household-care products.
| Business segment | Revenue in Q2 FY27 | YoY revenue growth | Underlying sales growth |
|---|---|---|---|
| Home Care | ₹6,878 crore | +21.4% | 22% |
| Beauty and Wellbeing | ₹4,319 crore | +15.7% | 16% |
| Personal Care | ₹2,617 crore | +7.9% | 9% |
| Foods | ₹3,849 crore | +8.5% | 9% |
Source: Business Standard’s segment performance report. Segment revenue figures are reported separately and do not sum to consolidated revenue because of other activities and reporting adjustments.
Home Care: 22% underlying sales growth
Home Care recorded the strongest growth among the four reported segments. HUL cited double-digit underlying volume growth across the category, alongside broader growth across product formats.
The company also highlighted the performance of its Surf Excel Easy Wash ₹99 pack and the continued expansion of liquid products. These initiatives are intended to improve consumer penetration and support demand across different price points.
Despite strong sales, Home Care segment profit rose only 2.6% to ₹1,111 crore. That difference suggests that revenue growth alone does not capture the complete picture of segment profitability.
Beauty and Wellbeing: 16% growth
Beauty and Wellbeing delivered 16% underlying sales growth, supported by premium skin-care and hair-care products. The segment also recorded double-digit underlying volume growth.
Revenue rose 15.7% to ₹4,319 crore, while segment profit increased 16.4% to ₹1,235 crore. This combination of revenue and profit growth made Beauty and Wellbeing one of the stronger contributors to HUL’s quarterly performance.
Personal Care: Growth remains moderate
Personal Care reported 9% underlying sales growth, with revenue increasing 7.9% to ₹2,617 crore. Underlying volume growth was flat, indicating that the increase in sales was not accompanied by higher underlying volumes.
Segment profit declined 8.7% to ₹449 crore. The gap between sales growth and profitability makes this category worth monitoring in subsequent quarters.
Foods: Steady growth
Foods delivered 9% underlying sales growth, with revenue increasing 8.5% to ₹3,849 crore. Segment profit grew 15.7% to ₹834 crore, outperforming revenue growth.
The company reported low-single-digit underlying volume growth. Lifestyle Nutrition, packaged foods and coffee were among the areas supporting performance.
Why HUL’s Profit Margin Declined
HUL’s EBITDA margin fell to 22.6% from 24% in the corresponding quarter last year, a contraction of 140 basis points. EBITDA itself increased 8%, but it grew more slowly than revenue from operations.
This indicates that HUL retained a smaller proportion of sales as EBITDA than it did a year earlier. Higher operating expenses, input-cost movements, product mix and investments in the business can all influence margins.
Management maintained its consolidated EBITDA-margin guidance of 22–24% and said commodity inflation remained a near-term consideration. The company’s ability to sustain volume growth while protecting margins will therefore be important in the coming quarters.
HUL Declares ₹19 Interim Dividend
HUL’s board declared an interim dividend of ₹19 per equity share with a face value of ₹1 for the financial year ending March 31, 2027.
| Dividend detail | Information |
|---|---|
| Dividend per share | ₹19 |
| Record date | November 12, 2026 |
| Scheduled payment date | November 25, 2026 |
| Financial year | FY2026–27 |
The record date determines which shareholders qualify for the dividend. Investors should consult HUL’s official exchange filings for the final payment details and applicable eligibility requirements.
The Bigger Picture
HUL’s Q2 FY27 performance reflects improving sales momentum across several consumer categories. Strong underlying volume growth is particularly relevant because it suggests that the quarter’s performance was not driven exclusively by price increases. Home Care and Beauty and Wellbeing were the standout contributors, while Foods delivered a comparatively stronger increase in segment profit than in revenue.
The main question is whether HUL can sustain that growth without further pressure on margins. Investors will be watching commodity costs, consumer demand, segment profitability and the company’s ability to turn higher sales into stronger earnings. The quarterly results show positive momentum, but continued execution will determine whether it translates into durable profit growth.
FAQs
1. What was HUL’s net profit in Q2 FY27?
HUL reported consolidated net profit attributable to shareholders of ₹2,790 crore for the July–September 2026 quarter, up 3.9% from ₹2,685 crore a year earlier.
2. What was HUL’s revenue in Q2 FY27?
Revenue from operations increased 14.5% year-on-year to ₹18,226 crore. The company’s turnover rose 14.8% to ₹18,071 crore.
3. What was HUL’s volume growth in Q2 FY27?
HUL recorded 7% underlying volume growth. Underlying sales growth reached 15%, its highest level in 14 quarters.
4. Which HUL segment performed best?
Home Care led with 22% underlying sales growth and revenue of ₹6,878 crore. Beauty and Wellbeing followed with 16% underlying sales growth.
5. What dividend did HUL announce?
HUL declared an interim dividend of ₹19 per equity share. November 12, 2026, is the record date, and payment is scheduled for November 25, 2026.
Looking Ahead
HUL’s performance in the second half of FY27 will depend on whether it can maintain volume-led growth as consumer demand, commodity costs and competitive conditions evolve. Home Care and Beauty and Wellbeing remain important growth drivers, while Personal Care’s flat underlying volume growth and declining segment profit will warrant attention.
For investors, the key indicators to track are underlying volume growth, EBITDA margins, segment profitability and the company’s ability to sustain earnings growth. The Q2 results show stronger sales momentum, but margin recovery and consistent profit conversion will be essential to demonstrate that the improvement is sustainable.
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