Hindustan Unilever reported a 15% year-on-year revenue increase to Rs 18,071 crore for the September 2026 quarter, backed by a 7% volume growth. While consolidated EBITDA rose 8% to Rs 4,089 crore, the PAT remained flat at Rs 2,796 crore due to a base-period tax gain. The company declared an interim dividend of Rs 19 per share, payable by November 25, 2026. Management remains optimistic about FY'27, citing resilient demand and a focus on maintaining EBITDA margins between 22-24% despite inflationary pressures.
Hindustan Unilever Reports Strong Q2 Growth and Dividend
Revenue grew 15% to Rs 18,071 crore; interim dividend of Rs 19 per share declared.
Reader Takeaway: Strong volume-led growth across all segments offset by flat profit growth due to base-year tax effects.
What just happened
Hindustan Unilever (HUL) released its financial results for the quarter ended September 30, 2026. The company delivered an Underlying Sales Growth (USG) of 15% and an Underlying Volume Growth (UVG) of 7%. The board has approved an interim dividend of Rs 19 per share (face value Re 1), with a record date of November 12, 2026, and payment scheduled for November 25, 2026.
Why this matters
The results demonstrate that HUL's 'Winning in New India' strategy is successfully capturing demand. Double-digit volume growth in core segments like Home Care (22% USG) and Beauty & Wellbeing (16% USG) confirms that consumer sentiment remains healthy in both urban and rural markets. The ability to grow volumes while maintaining a 22.6% EBITDA margin in a fluctuating commodity environment is a positive indicator for long-term operational efficiency.
Profitability and PAT Analysis
While EBITDA grew 8% to Rs 4,089 crore, the reported Profit After Tax (PAT) remained flat at Rs 2,796 crore compared to the same period last year. The stagnation in net profit is attributed to a one-time tax-related gain of Rs 273 crore that boosted the base quarter's figures. Operational performance remains robust, with the current margin staying firmly within the company’s long-term target of 22-24%.
Management Commentary
Management maintains a positive outlook for FY'27, expecting performance to exceed the previous fiscal year. While they acknowledge that commodity inflation is expected to persist in the near term, the company remains confident in its ability to navigate these costs through product premiumization and channel optimization.
What to track next
Investors should watch for the sustained recovery of volume growth in the Personal Care segment and whether HUL can successfully keep its EBITDA margins within the 22-24% bracket as commodity inflation evolves in coming quarters.