Hindustan Unilever posts 15% sales growth

Hindustan Unilever Limited (NSE: HINDUNILVR) reported turnover of ₹18,071 crore for Q2 FY27, up 15% year-on-year. Underlying volume growth reached 7%, while EBITDA rose 8% to ₹4,089 crore. The strongest contribution came from Home Care, which recorded 22% underlying sales growth. Beauty and Wellbeing grew 16%, while Personal Care and Foods each recorded 9% growth. The company also declared an interim dividend of ₹19 per share. My view: Volume growth is the key positive because it suggests sales growth is not being driven by pricing alone. However, EBITDA margin declined to 22.6% from 24% a year earlier. This indicates that cost pressure remains a concern despite stronger demand. The gap between revenue growth and profit growth needs attention. The next trigger is the company’s ability to protect margins while sustaining volume growth. I will watch the impact of commodity inflation and whether volume-led growth continues across Home Care, Beauty and Wellbeing, and Foods. Stance: Operational momentum has improved, but margin pressure remains a key risk. The next results should help assess whether sales growth translates into stronger profitability.