HUL Steps Up Investment to Revive Volume Growth

is changing gears after a relatively muted two-year period, and what stands out to me is that management is not looking at cost cutting alone. The strategy is to generate savings and then put that money back behind brands, distribution, products and newer categories. The company plans to increase capex to around 3% of turnover from 2% earlier, with more than 75% of future spending directed towards growth and savings initiatives. HUL is also targeting around 500 basis points of “fuel for growth” through better margins, operating efficiencies and savings, which it intends to reinvest in the business. Its medium-term EBITDA margin target has been set at 22–24%, compared with 23.6% in FY26. For me, the more interesting part is where HUL expects future growth to come from. Management expects increasing consumption and premiumisation to contribute about 40% each to incremental turnover, while entry into new spaces could contribute another 20%. Beauty, wellbeing, functional nutrition, premium products and convenience categories are among the areas being targeted. This tells me HUL is trying to balance two things: protect profitability while spending more aggressively to restart volume-led growth. The key thing I would track from here is whether higher investments actually translate into stronger volumes and market-share gains rather than only supporting margins. Learning Outcome: Cost savings become more valuable when a company reinvests them productively. Investors should track whether higher capex and brand spending eventually produce volume growth, market-share gains and sustainable profitability.