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Informist, Thursday, Feb. 12, 2026

By Anand JC and Ashutosh Pati

NEW DELHI/MUMBAI – The management of Hindustan Unilever Ltd. Thursday maintained a firm stance on its guidance, stating that its revenue growth for FY27 (Apr–Mar) will exceed that of FY26, resisting analysts' attempts to pin down whether the increase would fall within a specific growth range. During a post-earnings analyst call, the company pointed to an improvement in macroeconomic trends, consumer confidence, consumer sentiment, and the overall operating environment--in addition to fructification of its strategic actions--as the rationale behind its guidance.

The company's top executives stoutly reiterated that HUL was focusing on competitive, volume-led revenue growth which would be backed by scale that its brands afford it. HUL intends to do this by doubling down on fewer, bigger bets which would help accelerate its growth. Earlier in the day, the company reported a bottom line of INR 124.97 billion on revenue of INR 462.42 billion for the December quarter.

Going forward, the fast moving consumer goods bellwether expects its consolidated earnings before interest, tax, depreciation, and amortisation margin in the current guided range of 22-23%. For the December quarter, HUL reported a consolidated EBITDA margin of 23.3%, which is already within the company's guided range. The company's underlying volume growth in the December quarter of 4% was the highest in the last 12 quarters and revenue grew 6% on year.

With these factors in place, on being pressed by analysts if the company's top line can grow in double-digit going foward, the company stuck resolutely to its guidance without offering more colour. "We are seeing macros overall in the country improving. And a company that is as deep and wide as we are in the country, that plays a key role," an HUL executive said. "We are definitely seeing an improvement in macros, whether it is in terms of consumer sentiment or indeed in all measures that have been taken, that combined with the steps that we have taken have resulted in this performance for the quarter," the executive said.  

The company mentioned that the December quarter was more normalised in terms of impact of the cut in goods and services tax. "(in) October, we had guided you that in the previous quarter that we continue to see some transitionary effects of GST. We have seen the restocking into November but the way to look at it overall in this quarter is to treat this quarter as normal as regards (impact of) GST," the company said.

It expects the second half of FY26 to be better than the first half. "I repeat, the top line of FY27 will be better than full year 2026 and the margin to remain within guidance. So, we'll stay with that as of now. Beyond this, we'll not be able to guide any number," the company said.

PRICING

HUL's home care business contributes around 35% to its consolidated top line. This segment recorded its highest ever market share in the December quarter with a mid-single digit growth in underlying volume. The company said pricing for this segment has been benign. "We are seeing some non-feedstock commodities now inflate and we mentioned that and we've already begun to price in home care and we will continue albeit low single digit pricing but we will continue to price in home care gradually staying competitive," an executive said. 

Commodity prices are showing divergent trends, as per HUL. "While we don't see a hyperinflation but we do see a stable-to-inflationary kind of a stuff coming back and therefore, while I would not guide for a quarter, but overall for the year if you look at it, we do expect a low-single-digit price increases over the year," the company said.

Beauty and well-being is the second-most important segment for the company in terms of revenue contribution as it formed around 24% of its overall top line. This segment's volume grew in low-single digit for the December quarter. Within this, its skincare segment had a quarter of two halves, as the company put it. "Our winter portfolio we've had over the season a very strong double-digit performance, summer portfolio has been relatively challenged. It's been a very harsh winter and whether it's talcum powder, sunscreens or our mask in brightening portfolio this has been relatively challenged in the quarter," the company said. The company expects summer portfolio to bounce back going ahead as its portfolio is now equipped with products which can cater to variety of consumers.  

Thursday, its shares closed 2.2% lower on the National Stock Exchange at INR 2,409.70.  End 

Edited by Akul Nishant Akhoury

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