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 and EBITDA margin at 23.2%, despite GST-related disruptions and adverse weather conditions.

• PAT before exceptional items declined 4% YoY; PAT grew 4% due to a one-off tax resolution benefit of INR 273 crore.

• Board declared an interim dividend of INR 19 per share, totaling INR 4,464 crore, with record date set for 7th November 2025.

• Maintained market leadership in over 85% of business segments, with strong brand portfolio and distribution reach.

• Focused on volume-led growth, premiumisation, and modernising core brands, with continued investment in marketing and sales capabilities.

Financial highlights

• Q2/SQ'25 turnover: INR 16,061 crore; USG: 2% (price-led growth); EBITDA was INR 3,729 crore, margin at 23.2%, down 90 bps YoY.

• PAT before exceptional items down 4% YoY; PAT up 4% YoY due to one-off tax benefit.

• First half FY26: USG 3%, turnover growth 4%, EBITDA margin 23% (down 110 bps YoY), PAT up 5%.

• Gross margin at 50.9%, flat YoY; sequential improvement of 130 bps as price vs. cost gap moderated.

• Interim dividend of INR 19 per share declared.

Outlook and guidance

• GST-related disruption expected to subside by early November, with normal trading resuming.

• Anticipate gradual demand recovery, with H2 FY26 growth expected to be better than H1.

• Margin guidance remains at 22%-23%; ice cream demerger to add 50-60 bps to reported margin from December quarter.

• Continued focus on volume-led growth, premiumization, and investment in innovation and channels of the future.

• Price growth anticipated in low single digits if commodity prices remain stable.