Hindustan Unilever FY26 ends with a sharp March quarter step-up

Hindustan Unilever Limited closed FY26 with its strongest quarterly growth in about three years. In the March quarter (MQ26), turnover was 16,207 crore and consolidated revenue grew 8 percent year on year, supported by 7 percent underlying sales growth and 6 percent underlying volume growth. The company delivered EBITDA of 3,841 crore, up 6 percent, with margin at 23.7 percent. Profit after tax before exceptional items came in at 2,711 crore, up 4 percent.

For FY26, turnover was 63,763 crore, with 5 percent underlying sales growth and 4 percent underlying volume growth. EBITDA margin for the year was 23.6 percent and EBITDA was 15,054 crore. PAT before exceptional items was 10,324 crore and reported PAT from continuing business was stated at 10,652 crore. The company also highlighted a progressive step-up in underlying sales growth through the year, from 2 percent in FY25 to 7 percent in the March quarter.

March quarter: broad-based growth, volumes lead

The March quarter performance was broad-based across segments.

Home Care delivered 9 percent underlying sales growth and was described as its strongest performance in 11 quarters. Revenue for the quarter was 6,344 crore with a 19 percent EBIT margin. The company cited double-digit growth in Fabric Wash and strong volume growth in Household Care led by outperformance in Vim liquid. It also stated that the liquids portfolio accelerated its robust double-digit growth trajectory.

Beauty and Wellbeing reported revenue of 3,698 crore and a 29 percent EBIT margin, with 8 percent underlying sales growth and mid-single digit volume growth. Hair Care delivered strong double-digit growth, helped by stepped-up distribution, including a 25 percent increase in shampoo bottle distribution in General Trade, as referenced in the concall. Premium skin care performed strongly but was offset by a subdued mass skin care performance.

Personal Care reported revenue of 2,229 crore and a 19 percent EBIT margin. Underlying sales growth was 5 percent, while the company acknowledged low-single digit volume decline. Skin Cleansing delivered high-single digit growth, supported by Dove and Lux. Management also highlighted strong double-digit growth in Bodywash and a market share gain of about 400 bps in that category.

Foods reported revenue of 3,566 crore and a 20 percent EBIT margin with 5 percent underlying sales growth and high-single digit volume growth. Coffee continued to deliver strong double-digit growth. Lifestyle Nutrition delivered double-digit growth with Horlicks and Boost, and the company highlighted extensions into ready-to-drink and protein segments.

FY26: steady improvement, portfolio and channel changes

Management attributed the step-up in momentum to actions taken over recent quarters. These included sharpened priorities anchored in volume-led growth, a dedicated quick commerce organisation to strengthen omni-channel execution, and sharper resource allocation. The company committed 2,000 crore of capex towards premium formats, and highlighted active portfolio rotation, including the Ice Cream demerger and acquisitions in digital-first platforms.

The company stated that it deployed over 3,500 crore in FY26 towards Minimalist and OZiva transactions. In the concall, management said Minimalist is around 850 crore annual revenue run rate, and that Simple has scaled to an annual run rate of more than 160 crore.

In go-to-market, HUL cited expansion in General Trade direct coverage by around 2 lakh stores in FY26, more deliberate investments into speciality channels, continued investments in Modern Trade partnerships, and strong momentum in digital. E-commerce turnover grew more than 25 percent in FY26, while quick commerce turnover doubled.

The full-year segment revenue mix shared in the investor presentation was 37 percent Home Care, 23 percent Beauty and Wellbeing, 22 percent Foods, and 15 percent Personal Care.

Margins and risk management: crude-linked inflation returns

The company flagged an escalation in crude and crude-linked derivative costs and rupee depreciation following heightened geopolitical tensions. It stated it has focused on protecting supply continuity, and management said production and supplies were managed without disruption.

On costs, the CFO stated that material cost inflation is around 8 percent to 10 percent, and that the company has implemented price increases of 2 percent to 5 percent depending on portfolio. Management also pointed to stepping up the savings funnel, calibrating media investments, and taking judicious pricing actions.

The mid-term margin stance remains unchanged. Management reiterated consolidated EBITDA margin guidance in the band of 22.5 percent to 23.5 percent, and noted that near-term margins could move within the band depending on volatility.

Capital allocation and shareholder returns

HUL highlighted its financial strength and cash generation. For FY26 standalone, it reported reserves of 48,988 crore and cash from operations of 10,496 crore. ROCE was stated at 110.9 percent and ROE at 22.4 percent, both improving year on year.

The company also proposed a final dividend of 22 per share, taking the total dividend for FY26 to 41 per share (19 interim plus 22 final), with a total dividend payout of 9,633 crore.

What to track into FY27

Management expects FY27 to be better than FY26, supported by portfolio transformation and the scaling of omni-channel capabilities. The key operating variable to watch is the persistence of crude-linked inflation and currency moves, and how quickly pricing and savings can neutralise pressure without slowing the volume-led recovery.

The March quarter results show that the company’s execution focus is translating into stronger volumes. The next test is sustaining this momentum while navigating a volatile input cost environment.