India’s largest fast-moving consumer goods (FMCG) company, Hindustan Unilever Ltd (HUL), announced its results for the July–September quarter (Q2 FY26) on October 23, 2025, reporting a 4% year-on-year increase in consolidated net profit to ₹2,694 crore, supported by a one-time tax gain. The company’s revenue from operations rose 2% on-year to ₹16,061 crore, reflecting a steady performance during a period marked by GST rate transitions and extended monsoon conditions across several regions.
Key Financial Highlights
HUL recorded a net positive impact of ₹184 crore from the resolution of prior-year tax matters between the UK and Indian tax authorities. However, profit after tax before exceptional items declined 4% year-on-year, while EBITDA margin came in at 23.2%, lower by 90 basis points from a year earlier due to higher investments in brand and market growth initiatives.
On a standalone basis, the company’s sales rose 1% to ₹15,418 crore, and profit after tax increased 3% to ₹2,690 crore. The Board of Directors declared an interim dividend of ₹19 per share for the financial year ending March 31, 2026, reaffirming confidence in HUL’s long-term growth trajectory in the FMCG sector.
Segment Performance Overview
Home Care
The Home Care division, which includes popular brands such as Surf Excel, Rin, Comfort, and Sunlight, reported sales of ₹5,664 crore, down 1.1% from ₹5,731 crore a year earlier. The segment achieved mid-single-digit volume growth, offset by price reductions taken in previous quarters. HUL noted strong double-digit volume growth in liquids, driven by product innovations and competitive pricing.
Beauty and Wellbeing
The Beauty and Wellbeing segment registered sales of ₹3,732 crore, up from ₹3,421 crore in the same quarter last year. The segment delivered 5% underlying sales growth (USG), supported by skin care and health & wellbeing categories. However, turnover was slightly impacted by the temporary effects of GST rate rationalisation.
Personal Care
The Personal Care category recorded flat growth, with quarterly sales at ₹2,425 crore compared to ₹2,411 crore a year earlier. The segment was temporarily affected by GST rate transitions during the quarter, while Oral Care saw a marginal decline. Notably, Closeup reported low single-digit growth.
Foods and Refreshments
The Foods segment achieved 3% underlying sales growth and low-single-digit volume growth, driven by solid performance in Tea and Coffee, both of which grew in double digits. Consolidated sales for the segment stood at ₹3,869 crore, compared to ₹3,803 crore last year. The company noted early green shoots in its Lifestyle Nutrition portfolio, supported by sustained volume growth, though turnover was moderated by pricing actions taken in prior quarters.
Management Commentary
Commenting on the results, Priya Nair, CEO and Managing Director of Hindustan Unilever, said the company delivered a “competitive performance” despite transitory challenges arising from the GST reforms. She described the regulatory transition as a “positive step” that would ultimately boost consumer confidence and consumption once the markets stabilise.
Nair further stated that the company remains “obsessed with volume-led revenue growth”, focusing on accelerating portfolio transformation, sharper consumer segmentation, and stronger digital brand engagement to enhance long-term competitiveness.
Market Outlook and Strategic Direction
During the quarter, 40% of HUL’s portfolio shifted to the 5% GST slab from the previous 18%, a move expected to provide a long-term boost to affordability and consumption. The management anticipates a gradual recovery in demand from November, following the near-term disruptions caused by the transition.
Meanwhile, EBITDA for the quarter stood at ₹3,563 crore, marking a 2.3% decline year-on-year, but broadly in line with expectations. The EBITDA margin stood at 22.9%, down 60 basis points year-on-year but above analyst estimates of 22.5%. HUL expects margins to remain within 23–24%, with potential 50–60 basis point improvements anticipated post the planned demerger of its ice cream business.
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- Colgate-Palmolive India Q2 FY26 Results: Profit Down 17% YoY, Revenue Drops 6%; ₹24 Interim Dividend Announced
Conclusion
Hindustan Unilever’s second-quarter results underscore its resilience amid policy transitions and challenging market dynamics. The company continues to maintain profitability through prudent cost management, strong brand equity, and disciplined execution. With its strategic focus on digital engagement, innovation, and volume-led growth, HUL remains well-positioned to capitalise on demand recovery in the coming quarters.
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