HUL clocks stable margin on volume growth in Q2
Net profit rises 3.8% to `2,694 cr; Board nod for interim dividend of`19/ share for FY26
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New Delhi: FMCG major Hindustan Unilever Ltd (HUL) on Thursday reported an increase of 3.8 per cent in consolidated net profit at Rs2,694 crore for the second quarter ending September 2025. The company had logged a net profit of Rs2,595 crore in the July-September quarter a year ago, the company said in a regulatory filing. Its revenue was up 2.1 per cent at Rs16,034 crore in the Sep-tember quarter. The company’s revenue stood at Rs15,703 crore in the corresponding quarter a year ago. HUL had a ‘consolidated Underlying Sales Growth (USG) of 2 per cent and a flat Un-derlying Volume Growth (UVG) in the September Quarter of 25. Performance for the quarter reflected a transitory impact of GST changes and prolonged monsoon conditions in parts of the country,’ as per the earnings statement.
HUL’s total expenses in the September quarter were at Rs12,999 crore, up 3.32 per cent. Its total income, which includes other revenue, was up 1.5 per cent to Rs 16,388 crore. HUL’s board, in a meeting held on Thursday, approved an interim dividend of Rs 19 per share for FY’26.
“We delivered a competitive performance with an Underlying Sales Growth (USG) of 2 per cent and an EBITDA margin of 23.2 per cent in the quarter,” HUL CEO and Managing Director Pri-ya Nair said.
The latest GST reforms are a positive step by the government to drive consumption, expected to increase disposable income and improve consumer sentiment. However, the quarter saw a transi-tory impact as the market adjusted to these changes.
“We anticipate normal trading conditions starting early November, once prices stabilise, paving the way for a gradual and sustained market recovery,” she said. Shares of HUL on Thursday were trading at Rs 2,623.45 apiece on BSE, up 1.20 per cent in the morning trade.
Anticipates low-single digit price growth, better volume-led H2
HUL is anticipating a ‘low-single digit price growth’ in the upcoming quarters, especially in product categories that did not benefit from reduced GST rate, and expects a volume-led growth in the remaining second half of the fiscal year, its CFO Ritesh Tiwari said.
HUL, which reported a flat volume-led growth in the September quarter due to goods and ser-vices tax (GST) transition-related impact, is focusing “to drive volume-led improvement and ac-celeration in performance in the second half of the financial year compared to the first half,” he said. In the first half of the current fiscal year (H1), HUL’s total income was at Rs 33,103 crore, up 3 per cent with a volume growth of 2 per cent. Its EBITDA was at 23 per cent, down 110 bps.
“Going forward, with all the GST changes, we are not planning any further price changes for all the GST-impacted categories because we have done all the price changes. The focus now will be to stabilise this price in the market,” Tiwari told reporters in an earnings call. He further said of the total portfolio, 40 per cent is impacted by GST, “but there is... 60 per cent business, which sits with no impact of GST”.
“Now we will see where commodities are trended. As of now, the commodity is benign, and which is why we called out that we anticipate low single digit price growth going forward,” Ti-wari said.
