HUL's shift to growth-first strategy prompts bullish views from analysts

Optimistic Outlook

- VIVEAT SUSAN PINTO

FMCG MAJOR HINDUSTAN Unilever is prioritising sales growth over margins in FY26, as the company remains optimistic about a gradual revival in urban demand, driven by the government's fiscal stimulus measures. HUL's management, speaking on Thursday, announced a reduction in its Ebitda margin guidance to 22-23%, down from the previous range of 23-24%.

This revision comes as the company increases investments in advertising, sales promotions, trade channel spending, and brand development across segments. Gross margins are also expected to moderate as the firm focuses on delivering the right price-value proposition. Ebitda is earnings before interest, tax, depreciation and amortisation.