HUL Q2 FY27 Preview: Revenue May Rise 8.2% on Pricing

Hindustan Unilever Ltd. is scheduled to announce its financial results for the quarter and half year ended September 30, 2026, on October 28. The board will consider unaudited standalone and consolidated results, along with a possible interim dividend for FY27. The announcement comes after the company’s share price fell 3% to an over six-year intraday low of ₹1,758.60 on the BSE ahead of the results. Market expectations point to higher revenue, supported mainly by pricing, while elevated commodity costs remain a key issue for profitability.

Revenue expectation for the September quarter

Bloomberg consensus estimates indicate that HUL’s Q2 FY27 revenue could rise 8.2% year-on-year to ₹17,582 crore from ₹16,241 crore. Analysts broadly expect price increases to be the main contributor to reported growth. Volume growth is expected to remain in the mid-single-digit range, although some estimates put it at about 7%. The September-quarter print will be closely tracked for evidence of whether consumer demand has remained stable while prices have risen across parts of the FMCG basket.

Profit growth may trail sales growth

Consensus estimates project net profit of ₹2,784 crore for Q2 FY27, up 3.6% from ₹2,685 crore a year earlier. EBITDA is estimated to increase 7.7% to ₹4,018 crore from ₹3,729 crore. The implied EBITDA margin is estimated at 23.12%, compared with 23.0% in the year-ago quarter. The gap between expected revenue and profit growth reflects continued pressure from raw-material costs, particularly sugar and edible oils.

Key Q2 FY27 estimates

Pricing remains the main growth driver

Brokerages expect earlier price hikes to flow through into HUL’s reported sales during the September quarter. Antique Stock Broking said it expects double-digit revenue growth driven by price increases, though pricing could affect volume growth, which it expects to be close to the mid-single digits. Nuvama expects around 13% like-to-like consolidated revenue growth after excluding the ice cream business from both comparison periods. Its estimate assumes 7% volume growth and approximately 6% pricing growth.

Nuvama also noted that HUL took a price increase of around 5% in the June quarter and expects a further increase of around 2% in the September quarter. These measures are relevant because the company is facing higher input costs in several product categories. The reported outcome will show how pricing actions have translated into sales growth and whether they have protected profitability.

Commodity inflation weighs on margins

Input-cost inflation is expected to remain a constraint. Elara Capital expects EBITDA margin for HUL to decline by 17 basis points year-on-year and by 86 basis points sequentially in Q2 FY27. Antique Stock Broking expects a 21-basis-point sequential EBITDA margin contraction due to input-cost pressure. Nuvama projects gross margin to decline 221 basis points year-on-year to 48.3%, while estimating EBITDA margin at 23.1%, down 112 basis points year-on-year but 27 basis points higher sequentially.

The differing margin estimates reflect the balance between higher selling prices and the cost of commodities. Sugar and edible oils have been specifically identified as inputs that may pressure profitability. These costs matter for a large FMCG company because changes can affect several categories at the same time.

What HUL reported in the June quarter

HUL reported consolidated revenue of ₹17,341 crore in Q1 FY27, up 10.1% year-on-year and 6.1% sequentially. The company said the growth consisted of 5% volume growth and 5% realisation growth. Operating profit rose 8.4% year-on-year to ₹3,947 crore, while adjusted profit after tax increased 9.3% to ₹2,731 crore. Reported profit after tax declined 2.2% to ₹2,680 crore because of exceptional items.

Another reported comparison for the first quarter showed revenue from operations increasing 10% year-on-year from ₹15,757 crore to ₹17,341 crore, with underlying sales growth split equally between volume and pricing. EBITDA rose 8% to ₹3,947 crore, but the EBITDA margin contracted 40 basis points to 23.0% from 23.4%. The Q2 result will be compared with this recent trend of steady sales growth and margin pressure.

Segment trends from the previous quarter

Home Care delivered 14% underlying sales growth in Q1 FY27, its strongest performance in three years, supported by high-single-digit underlying volume growth. Beauty & Wellbeing recorded 12% underlying sales growth, also supported by high-single-digit volume growth. Hair Care posted double-digit growth, led by premium products and new formats. Personal Care grew 4%, mainly led by pricing amid palm-oil inflation.

Foods reported 7% underlying sales growth, supported by mid-single-digit volume growth and momentum in Lifestyle Nutrition and Coffee. Coffee delivered double-digit volume-led growth, aided by the scaling up of ready-to-drink products and Bru Gold. These category details will provide context for investors assessing whether demand remains broad-based in the September quarter.

FMCG sector demand outlook

Elara Capital expects the FMCG demand environment to remain stable in Q2 FY27. However, it estimates volume growth for its FMCG universe excluding ITC at 9.0%, lower than 9.5% in Q1 FY27, due to commodity inflation. HSBC expects HUL’s year-on-year revenue growth to improve to around 12% in the September quarter from 10% in the June quarter, partly due to a favourable base. HSBC estimates volume growth of around 7%, while projecting a two-year compound annual growth rate of 3.5%, similar to the June quarter.

The sector backdrop combines stable demand with pressure from commodity prices. For HUL, this makes the mix of volume growth, pricing and margins more significant than the headline revenue number alone. Investors will also assess management commentary on costs and demand conditions in the earnings presentation and conference call.

Share-price move before the announcement

HUL fell 3% in intraday BSE trade to ₹1,758.60, an over six-year low, ahead of the Q2 FY27 announcement. The move occurred as the market awaited an update on sales volume, price-led growth and margin performance. The company is among about 120 companies scheduled to announce September-quarter results on October 28, alongside Vedanta, TVS Motor Company and Hero MotoCorp.

The board is also scheduled to consider an interim dividend, if any, for the financial year ending March 31, 2027. The company has said it will communicate its unaudited standalone and consolidated results to stock exchanges after the board meeting, in line with listing requirements.

What investors will watch in the results

The primary data points will be revenue growth, underlying volume growth, pricing and EBITDA margin. Commentary on sugar, edible oils and other input costs will be important because brokerages expect margin pressure to continue. Investors will also watch segment-level performance in Home Care, Beauty & Wellbeing, Personal Care and Foods. Any decision on an interim dividend will be disclosed with the board’s outcome.

HUL’s Q2 FY27 results are due on October 28, with consensus estimates indicating higher revenue and modest profit growth. The release, investor presentation and earnings conference call will provide the next confirmed update on demand, pricing and cost conditions for the company.