HUL Q2 Results: Profit Flat at ₹2,796 Crore, Volumes Up 7% (October 28)

HUL Q2 results look dull at the headline and a lot more interesting underneath. Hindustan Unilever reported consolidated net profit of ₹2,796 crore for the September quarter, against ₹2,791 crore a year ago, according to the company’s results filing and press release dated October 28. Flat, basically. But the base quarter carried a one-off tax gain of ₹273 crore, and once you strip exceptional items out, profit grew 9%.

HUL Q2 results: the key numbers

Turnover came in at ₹18,071 crore, up 15%. Underlying sales growth, which HUL measures excluding acquisitions and disposals, was also 15%, the company’s highest in 14 quarters. Underlying volume growth was 7%.

Profitability is where the pressure shows. EBITDA rose 8% to ₹4,089 crore from ₹3,785 crore, slower than sales, so the EBITDA margin slipped 140 basis points to 22.6%. Profit after tax before exceptional items was ₹2,795 crore against ₹2,553 crore, the 9% growth mentioned above.

The board declared an interim dividend of ₹19 per share for FY27. The record date is November 12 and payment is due on November 25, as per the filing.

Home care carried the quarter

Every segment grew, but not equally. Home care led with 22% underlying sales growth on double-digit volume growth, and its revenue rose to ₹6,878 crore from ₹5,664 crore. Beauty and wellbeing delivered 16% underlying growth. Personal care and foods each managed 9%.

Personal care is the weak spot. Its segment result fell to ₹449 crore from ₹492 crore a year ago, and HUL’s own presentation shows flat volumes there. Livemint reported that CFO Niranjan Gupta put the year-on-year drop down to inflation, saying underlying personal care margins were still around 17%.

Costs, ad spend and the share price

Here’s the part we’d keep an eye on. Advertising and promotion spend fell to ₹1,481 crore from ₹1,632 crore a year earlier, a cut of about 9%, per the filing. Livemint quoted an LKP Securities analyst saying profitability was shielded by that cut, and CEO Priya Nair telling reporters the company will keep taking price hikes depending on how costs move. The same report put Brent crude around $115 a barrel on Wednesday, which matters because several of HUL’s detergents use crude-linked inputs.

HUL’s outlook slide says commodity inflation is expected to continue in the short term and that consolidated EBITDA margin should stay within its 22-24% guided range. It also expects FY27 to be better than FY26.

The stock didn’t celebrate. HUL closed at ₹1,815 on the NSE on Wednesday, down 0.41%, after falling more than 2% intraday, Livemint reported. That fits the wider mood in consumer stocks, with the Nifty FMCG index down about 20% this year, according to the same report.

What it means

Volume-led growth of 7% is a genuine positive for a company this size. If you want to see why that number matters more than revenue in an inflationary quarter, our explainer on volume growth in FMCG results walks through it. The open question is margins. HUL protected profit this quarter partly by spending less on ads, and that lever can’t be pulled every quarter. With price hikes and high input costs both in play, the next two quarters will show whether volumes hold up. HUL was one of the big names on our Q2 results calendar for this week, and its numbers set the tone for the rest of the FMCG pack.

Disclaimer: This article is for information and education only and is not investment advice. Please do your own research or consult a SEBI-registered adviser before making any investment decision.