HUL reports highest sales growth in 14 quarters as volumes pick up

Mumbai: Hindustan Unilever reported its highest underlying sales growth in 14 quarters in the September quarter, as strong volume growth in home care and beauty products helped drive performance despite softer demand in some food categories.


The maker of Dove soaps and Surf Excel detergents reported underlying sales growth of 15% and underlying volume growth of 7% in the quarter, according to its results announcement on Wednesday.


Also read: Hindustan Unilever looks to stronger FY27, but commodity inflation threatens to squeeze margins

Turnover stood at Rs18,071 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 8% year-on-year to Rs4,089 crore. The consolidated EBITDA margin fell 140 basis points to 22.6%.

Profit after tax before exceptional items grew 9% year-on-year. Reported profit after tax was flat at Rs2,796 crore, reflecting the impact of Rs273 crore in one-off tax-related gains recorded in the year-earlier period.

Home Care led segment growth, with underlying sales rising 22%, driven by double-digit volume growth in fabric wash and household care products.

Beauty & Wellbeing sales grew 16%, supported by double-digit, volume-led growth in hair care, skin care and colour cosmetics. Personal Care sales increased 9%, although volumes were flat.

The Foods business recorded 9% underlying sales growth, while volume growth remained in the low single digits. Packaged Foods delivered double-digit growth and coffee posted high-single-digit growth driven by volumes. Inflation weighed on tea sales, particularly in the mass-market segment.

“In September quarter, we delivered 15% Underlying Sales Growth, our highest in the last 14 quarters, with Turnover of Rs18,071 crores,” Chief Executive and Managing Director Priya Nair said in the release.

“Underlying Volume Growth was strong at 7% reflecting sustained momentum driven by our focus on crafting desirable brands and strengthening future-fit Go-to-Market,” she said.

HUL expects the underlying demand environment to remain resilient and fiscal 2027 to deliver better performance than fiscal 2026, supported by portfolio and channel transformation, according to its investor presentation.

However, commodity inflation is expected to persist in the short term, potentially keeping pressure on margins. The company expects its consolidated EBITDA margin to remain within its guided range of 22% to 24%.

HUL said it would continue to focus on competitive, volume-led profit growth, alongside calibrated pricing, cost savings and productivity improvements.

The board declared an interim dividend of Rs19 per share for the financial year ending March 2027.