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Informist, Friday, Sept. 4, 2026

 

--HUL: Shaping portfolio structurally towards higher margins 

--HUL plans to up capex to 3% of turnover from 2% of turnover in last 5 yrs 

--HUL: Expect EBITDA margin to be 22%-24% in medium term

 

NEW DELHI – Hindustan Unilever Ltd. Friday disclosed to investors its plans for the coming years, with its strategy peppered throughout with expectations of the Indian market growing bigger, the economy becoming richer, and banking big on investing in its premium brands across segments. Calling the market "new India", the consumption bellwether said the fast-moving consumer goods market in India offers a "rare" combination of scale and growth per capita.

 

Banking on competitive volume-led revenues and profit growth, the company said its medium-term earnings before interest, tax, depreciation, and amortisation margin range would be 22-24%--largely similar to its previous commentary. It had guided for 22.5-23.5% consolidated EBITDA margin range for the medium-term. 

 

HUL had reported an EBITDA margin of 23.6% for the financial year 2025-26 (Apr-Mar). The company plans to invest 3% of its overall turnover towards capital expenditure in the next five years, compared to 2% spent in the previous five. "Structural shifts in new India present an attractive FMCG opportunity. HUL will leverage its iconic portfolio to unlock competitive volume-led growth through consumption, premiumisation, market making and entering new spaces," the company said in a presentation.

 

In FY26, the company said it had focused on sharper resource allocation, accelerated growth in key pockets, and stepped up execution by setting up a new organisation focusing on quick commerce. Its underlying sales growth for the June quarter was 10%, up from 7% for the March quarter, and 5% for the December quarter. The company said it is investing "disproportionately" in its premium brands as over 60% of its advertising expenditure is on digital platforms. 

 

The home care segment contributes around 37% to the company's top line. The segment has "immense" headroom to grow, and HUL plans to leverage its iconic brands and high relative market share to "win" in this segment. The company sees premiumisation and format upgradation as its key growth drivers in this segment. By format upgradation, the company refers to users shifting from using detergent bars to powders, and from powders to liquids. Currently, 63% of its users prefer using powders. HUL earns around 23% of its revenues from this segment. 

 

HUL is planning to sell its hair care products in new spaces in new formats--Masstige and Prestige—through a digital channel. Additionally, it sees existing shampoo users adding more products to their hair care regime through purchases of conditioners, masks, and serums. Overall, premiumisation remains the main theme in small towns, tier-4, and rural markets. 

 

"We have deep consumer intimacy built over 90 years which enables us to delight varied consumers through our brands and products across the length and breadth of the country," HUL said. Personal care products account for around 15% of the company's top line. Prominent brands in this segment include Lifebuoy, Dove, Pears and Lux soaps, Closeup toothpaste, and others. The company plans to outpace its premium market growth by banking on premium soap bars like those offered under the Pears brand. 

 

For the June quarter, HUL had reported net profit of INR 26.31 billion on revenues of INR 166.57 billion. At 1143 IST, its shares traded at INR 1,980.30 on the National Stock Exchange, 0.9% higher than Thursday.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Anand JC

Edited by Shubhayan Bhattacharya

 

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