HUL Q2 FY26 Results: Profit Rises 3.8%, Declares Rs 19 Dividend
Hindustan Unilever Limited (HUL) reported modest growth in the second quarter of fiscal year 2025-26, with net profit increasing 3.8% year-over-year to Rs 2,694 crore. The FMCG major also announced an interim dividend of Rs 19 per share, providing relief to investors amid challenging market conditions.
Key Takeaways
- Net profit grows 3.8% YoY to Rs 2,694 crore
- Revenue increases 2.1% to Rs 16,034 crore
- EBITDA declines to Rs 3,729 crore with margin contraction
- Interim dividend of Rs 19 declared with November 7 record date
Financial Performance Overview
HUL’s Q2 FY26 results show a consolidated net profit of Rs 2,694 crore, up from Rs 2,595 crore in the same quarter last year. Revenue growth remained moderate at 2.1%, with the company posting Rs 16,034 crore compared to Rs 15,703 crore in Q2 FY25.
The company maintained its dividend commitment despite the challenging quarter, declaring Rs 19 per equity share. Eligible shareholders will receive the payment on November 20, with the record date fixed for November 7.
EBITDA and Margin Pressure
HUL reported EBITDA of Rs 3,729 crore in Q2 FY26, down from Rs 3,793 crore in the previous year. The company’s EBITDA margin contracted by 90 basis points to 23.2%, reflecting the ongoing market challenges and cost pressures.
Management Outlook
Priya Nayar, CEO and Managing Director of HUL, expressed optimism about market recovery starting late in the third quarter. She highlighted the positive impact of recent GST reforms while acknowledging the transitional challenges.
“The latest GST reforms are a positive step by the Government to drive consumption, expected to increase disposable income and improve consumer sentiment. However, the quarter saw a transitory impact as the market adjusted to these changes. We anticipate normal trading conditions starting early November, once prices stabilise, paving the way for a gradual and sustained market recovery.”
Segment Performance Analysis
HUL’s consolidated underlying sales growth stood at 2% with flat volume growth across segments:
- Home Care: Flat volume growth with approximately 5% sales increase
- Beauty & Wellbeing: 5% underlying sales growth driven by skincare and health products
- Personal Care: Flat growth with the food segment showing mild 3% underlying sales growth
The mixed performance across segments reflects the uneven consumer demand patterns and market adjustments to recent tax reforms.
