HUL’s New India strategy could revive growth momentum

is sharpening its “Winning in New India” strategy, prompting brokerages to remain constructive despite the stock’s weak performance. HUL has declined around 15% in 2026, but Jefferies, Nomura and HSBC retain Buy ratings, with targets of ₹2,440–₹2,450, implying around 24–25% upside from Friday’s close. The strategy focuses on premiumisation, sharper consumer segmentation, stronger brand investments, quick-commerce expansion and allocating resources towards fewer, larger growth opportunities. HUL generated ₹63,800 crore turnover in FY26, with 21 brands crossing ₹1,000 crore in annual sales and more than 90% of turnover coming from categories where it holds the No. 1 position. Recent operating trends also provide some comfort. Q1 FY27 revenue grew 10% YoY, while underlying volume growth stood at around 5%. Management expects FY27 to be stronger than FY26, although it continues to guide for an EBITDA margin of 22.5–23.5% amid input-cost pressures. The key catalyst will be whether the new strategy can translate HUL’s extensive distribution and brand strength into sustained volume-led growth and margin recovery. However, competition, higher investments and commodity inflation remain key risks. Overall, HUL’s strategic reset and improving volume trajectory offer a potential recovery opportunity. Execution, volume growth and margin protection will determine whether the stock can deliver the expected rerating.