Shares of Hindustan Unilever Ltd (HUL) rose nearly 3% on Thursday after the fast-moving consumer goods (FMCG) major announced its financial results for the July–September quarter (Q2 FY26) along with an interim dividend for shareholders.
The stock opened slightly higher and touched an intraday high of Rs 2,667.55 on Dalal Street.
HUL shares have been on a steady uptrend in recent months. Over the last six months, the stock has gained 8.03%, while it has risen 3.81% in the past month and 1.84% in the last five trading sessions.
HUL reported a 4% year-on-year rise in consolidated net profit for Q2 FY26 to Rs 2,694 crore, helped by a one-off tax gain. The company’s revenue from operations grew 2% year-on-year to Rs 16,061 crore.
The FMCG major said it recorded a positive impact of Rs 184 crore during the quarter from the resolution of past tax matters between the UK and Indian tax authorities. However, profit after tax before exceptional items declined 4% compared to the same quarter last year.
The company’s underlying sales growth (USG) stood at 2%, with flat underlying volume growth (UVG). HUL said performance was affected by temporary factors such as the recent Goods and Services Tax (GST) rate revisions and extended monsoon conditions in several regions, which impacted rural demand.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) margin came in at 23.2%, down 90 basis points from a year earlier. The company attributed this decline to higher investments made in marketing and brand-building activities during the quarter.
On a standalone basis, sales grew 1% to Rs 15,418 crore, while standalone profit after tax (PAT) increased 3% to Rs 2,690 crore.
Alongside the results, the Board of Directors of HUL declared an interim dividend of Rs 19 per share for the financial year ending March 31, 2026. The company said the dividend will be paid to shareholders whose names appear in the register as of the record date announced.
The rise in HUL’s stock reflected investor confidence in the company’s long-term growth prospects, despite near-term pressure from rural demand and input costs.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)