Hindustan Unilever (HINDUNILVR) Q2 25/26 earnings summary

Executive summary

• Achieved 2% year-over-year sales growth for the quarter ended 30th September 2025, with turnover at INR 16,061 crore, despite GST-related disruptions and adverse weather conditions.

• Maintained market leadership in over 85% of the business, with 19 brands exceeding INR 1,000 crore annual turnover.

• Focused on volume-led growth, premiumization, and digital-first channels, with continued investment in marketing, sales, and brand modernization.

• Standalone sales for the quarter grew 1% year-over-year to INR 15,418 crore.

Financial highlights

• EBITDA margin at 23.2%, down 90 bps year-on-year, with consolidated EBITDA of INR 3,729 crore; standalone EBITDA margin at 23.1%.

• Profit after tax before exceptional items declined 4% (consolidated) and 5% (standalone); reported PAT grew 4% (consolidated) and 3% (standalone) due to a one-off tax benefit.

• Interim dividend of INR 19 per share declared, totaling INR 4,464 crore payout.

• Gross margin at 50.9%, flat year-on-year, but improved 130 bps sequentially.

• Exceptional items included a one-off positive impact of INR 273 crore from tax resolution.

Outlook and guidance

• GST-related disruptions expected to subside by early November, with normal trading resuming and gradual demand recovery anticipated.

• Second half of FY26 expected to outperform the first half; margin guidance maintained at 22%-23%.

• Ice cream business demerger approved and expected to complete by December, with listing in Q4 FY26.