Hindustan Unilever Q2: Net profit rises 3.6% to ₹2,685 crore YoY; firm announces interim dividend ₹19 for FY26

The company’s revenue from operation stood at ₹16,034 crore in Q2 FY26 in contrast to ₹15,703 crore in the corresponding quarter of last year, marking a growth of 2.1%.

On the operation level, HUL’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) marginally declined by 1.3% at ₹3,522 crore in the reporting quarter as against ₹3,570 crore in Q2 FY25.

The margin, however, contracted to 21.97% in Q2 FY26 in contrast to 22.73% YoY.

The FMCG firm has also announced an interim dividend of ₹19 per equity share of face value of ₹1 each for FY26. The record date to determine shareholders eligible for the interim dividend has set for November 7, 2025, and the dividend will be paid on November 20, 2025, HUL said.

Following the earnings, HUL shares were trading 1.44% higher at ₹2,692 apiece on the National Stock Exchange at 11:09 AM.

HUL reported that its profit after tax grew mainly due to a one-off gain from the resolution of prior years’ tax matters between UK and Indian tax authorities. Quarterly performance was impacted by temporary GST changes and extended monsoon conditions in some regions. EBITDA margins declined amid higher business investments.

“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 transitory 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,” said Priya Nair, CEO and Managing Director of HUL.

For the first half of the current financial year (H1 FY26), HUL’s net profit surged 4.6% to ₹5,441 crore from ₹5,201 crore year-on-year (YoY). Its revenue for H1 FY26 stood at ₹32,330 crore as against ₹31,200 crore, marking a growth of 3.62% YoY.

Segment-wise updates

• HUL’s Home Care delivered mid-single-digit UVG offset by price reductions taken in previous quarters, resulting in a flat USG. Fabric Wash grew volumes in mid-single digits, driven by strong double-digit volume growth in liquids, underpinned by successful innovations and competitive pricing actions.

• Beauty and Wellbeing delivered 5% USG, driven by Skin Care and Health & Wellbeing. Hair Care continued to strengthen its market leadership in the quarter. However, turnover declined year-on-year due to the transitory impact of GST rate rationalisation.

• Personal care turnover growth was flat, impacted by the GST rate transition in the quarter, while the competitive position strengthened.

• Foods delivered 3% USG with low-single-digit UVG. Beverages (tea and coffee) grew in double digits. Tea saw high single-digit growth driven by a healthy mix of price and volume. Coffee sustained its strong double-digit growth momentum. Early green shoots were observed through sustained UVG in Lifestyle Nutrition. However, turnover declined, driven by pricing actions taken in previous quarters to refine pack-price architecture.

• Packaged foods delivered a subdued performance amid the GST transition. Market Makers continued its robust growth momentum. Ice cream turnover declined year-on-year on account of prolonged monsoons in parts of the country and the GST transition.

Near-term outlook

HUL said GST-related disruption continues into October. However, normal trading conditions are anticipated from early November onwards.

If commodity prices remain where they are, price growth will be in low single digits, it added. Overall, HUL expects the second half of FY26 to be better than the first half.

“Looking ahead, we are determined to accelerate our portfolio transformation by radically sharpening our consumer segmentation, being bolder in transforming our core brands to make them more modern, desirable and youthful, future-proofing our marketing & sales capabilities by enabling superior online brand discovery & fulfilment and investing disproportionately to scale our high-growth demand spaces,” said Nair.

“We believe these key priorities, coupled with a supportive macroeconomic environment, will position us to accelerate volume-led growth in the mid-to-long term,” she added.