India · Delayed Price · Currency is INR Hindustan Unilever Earnings Call Transcripts
Fiscal Year 2026
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Delivered 8% revenue growth in Q4 FY26, led by strong volume gains and premiumization, with EBITDA margin at 23.7%. Strategic investments in premium formats and omni-channel execution supported broad-based growth, while cost inflation was managed through pricing and savings.
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Underlying sales and volume growth accelerated, with broad-based gains and strong premium brand performance. Margin guidance remains steady, while portfolio premiumization and quick commerce expansion drive future growth.
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Q2 FY26 saw 2% underlying sales growth, with EBITDA margin at 23.2% and PAT up 4% due to a one-off tax benefit. GST reforms caused short-term disruptions but are expected to drive long-term demand recovery, with H2 growth anticipated to improve. Ice cream demerger will boost margins by 50-60 bps.
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Turnover grew 5% with 4% volume growth, but EBITDA margin declined 130 bps year-over-year due to strategic investments. Premium and digital-first segments outperformed, while Glow & Lovely and Horlicks showed sequential improvement. Guidance remains for sustained, gradual recovery and margin improvement.
Fiscal Year 2025
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Turnover grew 2% to INR 60,680 crore in FY25, with strong Market Maker and e-commerce growth, but gross margin and EBITDA margin declined due to commodity inflation and stepped-up investments. Margin guidance is revised to 22%-23% for the next 2-3 quarters to support growth initiatives.
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Sales grew 2% year-on-year, driven by pricing, with flat volumes amid subdued demand and a shift to smaller packs. Gross margin was 50% and EBITDA margin 23.5%, while reported PAT rose 19% due to a one-time gain from the Pureit divestment. The company announced the acquisition of Minimalist and expects demand moderation to persist in the near term.
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Turnover reached INR 15,319 crores with 2% underlying sales growth and 3% volume growth, while EBITDA margin held at 23.8%. Home care and beauty segments led growth, but personal care and foods faced headwinds from commodity inflation and muted demand. Dividend payout totaled INR 6,814 crores.
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Revenue grew to INR 15,166 crores with 4% volume growth and 2% sales growth, as margins and net profit improved year-over-year. Premiumization, innovation, and e-commerce drove performance, while rural demand showed early recovery and commodity volatility remains a watchpoint.
Fiscal Year 2024
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The event outlined a decade-long strategy focused on double-digit EPS growth, premiumization, and digital transformation, with tailored approaches for core, future core, and market maker segments. Divisional strategies emphasize innovation, omnichannel reach, and sustainability, while capital allocation prioritizes investment in high-growth categories and ongoing portfolio optimization.