Hindustan Unilever Q2 results: Profit rises 4% to ₹2,790 crore, ₹19/share dividend declared; margins under pressure

Hindustan Unilever (HUL), the fast-moving consumer goods (FMCG) firm, announced its July to September quarter results for the financial year 2026-27 on Wednesday, October 28, reporting an overall growth in financial performance while margins remained under pressure.

The latest exchange filings showed that HUL’s consolidated net profits (attributable to owners) increased nearly 4% to ₹2,790 crore in the September quarter of FY27, in comparison to ₹2,685 crore in the same period a year earlier.

The FMCG company’s revenue from core operations advanced 14.7% year-on-year (YoY) to ₹18,037 crore in the second quarter results, compared with ₹15,715 crore in the corresponding quarter of the previous financial year, as per the consolidated statements.

HUL’s growth in profits in the September quarter was largely driven by the revenue gains in the period, while elevated raw material costs and other expenses added pressure on the margins.

While the overall expenses increased nearly 16% in the quarter, raw material costs surged 13.6% in the period to ₹6,408 crore in the Q2 results, compared with ₹5,638 crore in the same period a year earlier.

Margins under pressure?

Data showed that Hindustan Unilever’s operating profit, or earnings before interest, tax, depreciation, and amortisation (EBITDA), improved 8.9% YoY to ₹3,900 crore in the period under review, from ₹3,581 crore in the previous year.

However, despite the improving operating profit, the EBITDA margins contracted 116 basis points to 21.62% in Q2 FY27, from earlier 27.78% in the Q2 FY26 results, as per the consolidated statements.

The management cited that the overall environment remains resilient in the economy, with healthy macro indicators supporting a positive consumption growth environment in the domestic market.

“In September quarter, we delivered 15% Underlying Sales Growth, our highest in the last 14 quarters, with Turnover of ₹18,071 crore. Underlying Volume Growth was strong at 7%, reflecting sustained momentum driven by our focus on crafting desirable brands and strengthening future-fit Go-to-Market,” said Priya Nair, CEO and Managing Director of HUL.

₹19/share dividend declared

HUL’s board of directors declared a ₹19 per share interim dividend with a face value of ₹1 apiece for the financial year 2026-27. Equity investors will be eligible for the dividend payment up to 24 hours ahead of the record date of the corporate action.

“Declared an interim dividend of ₹19 per equity share of face value of ₹1 each for the financial year ending March 31, 2027,” the company informed the stock exchanges.

Hindustan Unilever fixed the official record date for the dividend payment on Thursday, November 12, and the payment will be credited to all the eligible shareholders on Wednesday, November 25, as per the announcement.

HUL’s Q2 interim dividend update marks the first dividend return to investors in the current financial year, and comes after the company last declared a ₹22 per share dividend for shareholders back in June 2026.

Stock reaction after Q2

Hindustan Unilever shares jumped 2.3% to hit an intraday high of ₹1,861.20 apiece after the Q2 earnings release on Wednesday, October 28, as investors focused on the initial fine print before diving deeper into the financials.

However, after hitting the intraday high, the stock reversed its gains, trading around 1% lower at ₹1,800 apiece on Wednesday’s market, as per NSE data.

The company’s market capitalisation (m-cap) was at ₹4.16 lakh crore as of the trading session on Wednesday, October 28.