HINDUNILVR

Delivers 15-Quarter High in Volumes

(HUL) reported strong Q4FY26 results, with volume growth of 6%—its highest in 15 quarters. Net profit surged 21.3% YoY to ₹2,994 crore, while revenue rose 7.6% YoY to ₹16,351 crore. Despite rising input costs and geopolitical tensions, HUL managed to balance price hikes with volume expansion, aided by premiumisation and resilient urban demand. Segmental Performance (Underlying Growth) Consolidated: 7% sales growth, 6% volume growth. Home Care: 9% sales growth, high single-digit volume growth. Beauty & Wellbeing: 8% sales growth, mid single-digit volume growth. Personal Care: 5% sales growth, low single-digit volume growth. Foods: 5% sales growth, high single-digit volume growth. Profitability & Margins EBITDA (Q4FY26): ₹3,841 crore (+6% YoY). EBITDA margin: 23.5% → 22.9% (–50bps YoY). Margin pressure stemmed from higher delivery and supply chain costs, despite price hikes. Management expects FY27 margins in the 22.5–23.5% range, supported by efficiency gains and premium product mix. Strategic Highlights Price hikes: Key lever to offset input cost inflation. Premiumisation: Strong traction in beauty, wellbeing, and urban-focused categories. Digital & hyper-local commerce: Expanding reach, though weighing on margins. Exclusion of Kwality Walls (demerged in 2025): Adjusted base for revenue growth. Outlook HUL expects FY27 to outperform FY26, driven by premiumisation, urban demand, and supply chain resilience. Risks include continued input cost inflation, geopolitical volatility, and rural demand recovery pace. The company remains focused on balancing volume-led growth with margin discipline. Conclusion HUL’s Q4FY26 results highlight a successful balancing act: strong volume growth despite cost pressures, aided by price hikes and premiumisation. While margins dipped slightly, the company’s guidance suggests confidence in sustaining profitability through FY27.