FMCG bellwether Hindustan Unilever (HUL) reported March quarter results broadly in line with Street expectations, with revenue growing 8 per cent on-year to ₹16,207 crore, its fastest growth in 12 quarters, while the underlying performance came in stronger than anticipated.
Underlying sales growth stood at 7 per cent, driven by 6 per cent volume growth, signalling that the company’s multi-quarter effort to reorient around volume-led growth is beginning to bear fruit even as rising commodity costs from West Asia introduce a new source of uncertainty.
The March quarter caps a steady recovery through the year, with underlying sales growth stepping up from 2% in FY25 to 3% in the first half of FY26, 5% in the December quarter, and now 7%. For the full year, HUL reported consolidated revenue of ₹63,763 crore, up 5% on underlying sales growth of 5% and volume growth of 4%.
HUL is witnessing a shift from the earlier pricing-versus-volume trade-off, with both levers now working together even as input cost pressures persist, supported in part by higher brand investments.
Commenting on the performance, Priya Nair, Chief Executive Officer and Managing Director, said the company’s actions on portfolio, brand investment and distribution have driven a “progressive step-up in performance” through the year.
Segment performance
Growth was broad-based, led by Home Care and Beauty & Wellbeing. Home Care rose 9%, its strongest quarter in 11 quarters, driven by double-digit growth in fabric wash and continued momentum in liquids, reinforcing its role as the company’s volume backbone and premiumisation engine. The liquids portfolio crossed ₹4,000 crore in annual turnover during the year, while laundry powders achieved their highest-ever market share.
The segment’s performance reflects HUL’s deliberate push to convert the mass powder market to liquids and premium powders — a premiumisation play that management identifies as its single biggest volume growth lever in Home Care.
Beauty & Wellbeing grew 8%, with strong performance in hair care and premium portfolios, although demand in mass skin care remained subdued. Premium skin care and “Channels of the Future” — including quick commerce and specialty retail — maintained double-digit growth and continued to gain market share. In FY26, both Vaseline and Sunsilk crossed the ₹1,000 crore annual turnover milestone, taking HUL’s total number of brands above that threshold to 20.
Foods and Personal Care grew at a more moderate 5% each. Foods was led by strong double-digit growth in coffee and lifestyle nutrition (Horlicks and Boost), along with mid-single-digit growth in packaged foods such as ketchup, chutneys, and mayonnaise. Tea delivered low single-digit volume growth, with value growth lagging volume due to price deflation.
Personal Care growth was driven by skin cleansing, led by Dove and Lux, with Bodywash recording double-digit competitive growth. Oral care continued to grow at a low single digit, though Closeup strengthened its market share. A low single-digit volume decline in the segment reflects the pricing-led nature of some of the growth, even as new launches such as Lifebuoy IceBath and Pepsodent Sensitive Care expand presence in premium and high-growth sub-categories.
The spread of growth across categories points to an improving but uneven demand recovery, with mass and premium segments diverging, and comes against a full-year revenue growth of 5%.
Margins under pressure
EBITDA margin stood at 23.7%, improving sequentially by 40 basis points but declining 50 basis points year-on-year due to continued volatility in input costs, partly driven by crude-linked inflation following disruptions in West Asia. While revenue growth accelerated, EBITDA growth lagged at 6%, reflecting continued cost pressures and higher brand investments, with limited operating leverage.
For the full year, EBITDA margin came in at 23.6% — at the higher end of HUL’s guided range of 22.5–23.5%. Reported profit after tax rose 20% to ₹3,002 crore, supported by a one-time gain from the divestment of a minority stake in Nutritionalab. Underlying profit after tax before exceptional items grew a more modest 4% to ₹2,711 crore, while full-year underlying profit remained flat at ₹10,324 crore.
Niranjan Gupta, Executive Director, Finance and Chief Financial Officer, said cost inflation remains elevated at 8–10%, while price increases to date are in the range of 2–5%, indicating a calibrated approach to pricing. The company is using a mix of price increases and grammage adjustments across packs to manage inflation, protecting price points in mass segments while taking calibrated hikes in others.
“Given low elasticity… we do not currently see cause for adverse volume impact,” Gupta said, adding that despite geopolitical disruptions in West Asia, the company has not seen any supply disruption and has secured sourcing through its global and local supply network while relying on savings programmes and efficiencies to stay within margin guidance.
Portfolio and capital allocation
During the year, HUL sharpened its portfolio through both exits and acquisitions. It completed the demerger of its ice cream business and divested a minority stake in Nutritionalab. On the acquisition side, it acquired a 90.5% stake in premium skincare brand Minimalist and the remaining 49% stake in Zywie Ventures (OZiva), with total acquisition outlay exceeding ₹3,500 crore.
The company has also committed approximately ₹2,000 crore in planned capital expenditure towards premium formats such as liquids, nutrition and personal care, signalling a continued shift towards higher-value segments.
Capital expenditure for the year stood at ₹1,258 crore, while operating cash flows were about ₹11,000 crore. The Board has proposed a final dividend of ₹22 per share, taking the total dividend for FY26 to ₹41 per share and an aggregate payout of ₹9,633 crore, underscoring the company’s strong cash generation and asset-light model.
Channels and distribution
Distribution and channel investments remained a key lever. HUL added around 2 lakh stores to its direct general trade coverage during the year. Quick commerce doubled its turnover and now contributes about 4% of total revenue, supported by a dedicated organisational setup and improved supply chain service levels. E-commerce (excluding quick commerce) grew over 25% for the year.
The company is building an omnichannel presence across general trade, modern trade, e-commerce and quick commerce to support demand across a rapidly evolving retail landscape. The combination of premiumisation, channel expansion and supply chain resilience is also strengthening HUL’s competitive position, particularly against smaller players more exposed to cost volatility.
Demand and outlook
Nair said demand trends remain stable across markets, with rural slightly ahead of urban but both moving in tandem, while emphasising that India remains resilient despite global volatility.
“More recently, heightened geopolitical tensions have led to commodity and currency volatility,” she said. “We are navigating these headwinds through disciplined savings, the resilience of our global and local supply chain and calibrated pricing actions.”
Gupta said the company expects FY27 margins to be better than FY26, with EBITDA margins likely to remain within the guided range, while volume-led growth remains the priority. Overall, the March quarter marks a clear improvement in underlying momentum, but with growth supported by calibrated pricing, pack-size adjustments, channel expansion, and higher brand and investment, the durability of this volume recovery even amid geopolitical disruptions would be the key monitorable for the Street.