THE COMPASS Pace of volume recovery key to gains for Hindustan Unilever

Hindustan Unilever Ltd’s (HUL's) second quarter 2025-26 (Q2FY26) consolidated revenue rose 2 per cent to %16,250 crore, with low or flat volume growth, Demand remained stable but goods and services tax (GST) transition and prolonged monsoon hurt offtake. Management expects the second half of the current financial year to be better than HiFY26.

- DEVANGSHU DATTA

Net sales grew 2.1 per cent year-on-year (Y-0-Y) to 16,060 crore while underlying volume growth (UVG) was flat Yo-Y. Home care revenue declined 1 percent YoY (UVG up mid-single digit), beauty and wellbeing rose 9.1 per cent Y-0-Y (UVG flat), personal care was flat Yo-Y (UVG high-single digit decline), and food & refreshment grew 2 per cent Yo-Y (UVG up low-single digit).

Gross margins contracted 20 basis points (bps) Y-0-Y to 51.4 per cent. Operating profit margin contracted 80 bps Yo-Y to 23 per cent. The operating profit declined 1 per cent Y-0-Y to 3,740 crore, profit before tax declined 5 per cent Y-0-Y to%3,400 crore, net profit (before extraordinary items) declined 4 percent Y-0-Y to 2,500 crore, and reported net profit rose 4.1 per cent Yo-Yto%2,690crore. An exceptional item of %184 crore due to resolution of prior-year tax matters between the UKand Indian tax authorities had a one-off positive impact.