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    Hindustan Unilever Limited

    HINDUNILVRGood
    Fast Moving Consumer Goods·12 Feb 2026
    Management Summary

    HUL delivered its strongest volume growth in 12 quarters at 4% UVG, supported by improving macro conditions including lower food inflation and RBI rate cuts. All four business segments contributed to growth. The company completed the Ice Cream demerger and is doubling down on premium/D2C plays with OZiva full acquisition. Management guided for FY27 topline to be better than FY26, with margins staying within the guided 22.5%-23.5% range post ice cream demerger.

    Highlights

    8

    • Revenue growth of 6% with Underlying Sales Growth (USG) of 5% and Underlying Volume Growth (UVG) of 4%

    • UVG of 4% is the highest in the last 12 quarters

    • EBITDA at ₹3,788 crores, up 3% YoY; EBITDA margin at 23.3% within guided range

    • Gross Margin healthy at 50.8%, up 30 bps YoY aided by Minimalist inclusion

    • PAT before exceptional items at ₹2,562 crores, up 1% YoY (4% adjusted for ₹113 crore gratuity impact)

    • Reported PAT at ₹6,603 crores, up 121% YoY due to Ice Cream demerger gain and OZiva fair valuation

    • Ice Cream demerger completed; KWIL listed on Feb 16, 2026

    • Board approved acquisition of remaining 49% stake in OZiva for ₹824 crores

    What Changed2

    vs Q4 FY26

    Guidance items3 → 4 (+1)Q&A highlights8 → 3 (-5)

    Key financials

    Single quarter

    07 metrics
    1. 01Revenue Growth6%
    2. 02USG5%
    3. 03UVG4%
    4. 04EBITDA₹3,788 Cr+3%YoY
    5. 05EBITDA Margin23.3%

    Segment breakdown

    Home Care
    3% USGmid-single-digit % UVGhighest ever qualitative Market Share
    Beauty & Wellbeing
    6% USG
    Personal Care
    6% USG
    Foods
    6% USGhigh-single-digit % UVG
    List

    Guidance & targets

    4
    CategoryTargetPriority
    Revenue
    FY27 Top Line Growth
    Better than FY26
    		Medium
    Revenue
    H2 FY26 vs H1 FY26
    Second half better than first half
    		Medium
    Margin
    EBITDA Margin Range
    22.5%-23.5%
    		High
    Profitability
    Pricing Growth
    Low single-digit price increases
    		Medium

    Risks & concerns

    7
    RiskSeverity

    Input cost volatility from rupee depreciation and non-feedstock commodity inflation

    Depreciating rupee, sulfuric acid inflation impacting Home Care; management taking calibrated price increases — Management acknowledged

    medium

    Skin Care weakness in non-winter portfolio

    Summer portfolio (talcum powder, sunscreens, mass skin brightening) was challenged; management expects seasonal bounce-back — Both acknowledged

    medium

    Home Care USG below UVG for extended period due to negative pricing

    Price reductions taken earlier; expected to anniversarize by June quarter. Calibrated price hikes begun — Analyst acknowledged

    medium

    Lower other income reducing PAT growth despite EBITDA growth

    Softer interest rates + lower investable surplus post acquisitions and special dividend payout — Management acknowledged

    low

    Areas of Evasion(3)

    • Double-digit growth achievability
    • Specific tonnage growth vs UVG breakdown
    • Specific growth rates at different price points in Skin Care

    Q&A highlights

    3

    “Fiscal year'27 better than fiscal year'26 is on the top line and margin to stay within the guidance... Beyond this, we will not be able to guide any number.”

    Multiple analysts pressed on whether double-digit growth is achievable; management repeatedly refused to commit beyond directional guidance, suggesting limited visibility or conservatism

    asked by Percy (IIFL) / Jay Doshi (Kotak) / Mihir P Shah (Nomura)

    2 min read6 chapters

    Detailed Narrative

    01

    Ice Cream Demerger Completed, OZiva Full Acquisition Signals Portfolio Sharpening

    HUL completed the Ice Cream demerger with Kwality Walls India Limited (KWIL) listed on February 16, 2026. The Board approved acquiring the remaining 49% stake in OZiva for ₹824 crores, reflecting its strong scaling over 3 years. Combined with Minimalist, HUL's D2C portfolio now has an ARR of ₹1,100 crores. The company also divested its minority stake in Nutritionalab to USV for ₹307 crores, exemplifying the 'fewer, bigger bets' strategy.

    02

    Quick Commerce Organization Established as Channel Scales to 3% of Business

    HUL set up a dedicated quick commerce organization with the lead reporting directly to the sales head. Quick commerce is growing ~100% quarter-on-quarter and now contributes 3% of business. Supply chain improvements drove 1,400 bps improvement in availability and 20% reduction in lead time from PO generation to servicing. Management confirmed q-commerce generates better gross margins than modern trade due to premium portfolio mix.

    03

    Home Care at Highest-Ever Market Share Despite Negative Pricing

    Home Care delivered mid-single-digit UVG on a high-single-digit UVG base, with USG at 3% due to earlier price reductions. The segment achieved its highest-ever market share. Fabric wash delivered competitive mid-single-digit UVG while Household Care posted double-digit UVG. The Liquids portfolio recorded strong double-digit growth. Negative pricing impact expected to anniversarize by June quarter, with calibrated price increases already initiated.

    04

    Organizational Restructuring for Speed and India-First Decision Making

    From January 2026, all Business Unit Heads report directly to CEO Priya Nair, replacing the earlier dual-reporting structure. A Chief Marketing Officer role was created under each Business Unit. Unilever R&D also established an India-focused category design and deploy organization. Management emphasized this enables faster, more India-centric decisions while retaining access to Unilever's global R&D, procurement, and brand resources.

    05

    Beauty & Wellbeing: Tale of Two Halves in Skin Care

    Beauty & Wellbeing delivered 6% USG with Hair Care growing double-digits led by Dove and TRESemmé. However, the non-winter Skin Care portfolio (talcum powder, sunscreens, mass skin brightening) was weak due to a harsh winter season. The winter portfolio including Vaseline delivered double-digit growth for the full season. Minimalist expanded to 25,000+ offline stores from 3,000 since acquisition and delivered strong double-digit growth.

    06

    Foods Broad-Based Growth with Lifestyle Nutrition Turnaround

    Foods delivered 6% USG driven by high-single-digit UVG. Lifestyle Nutrition posted its third consecutive quarter of positive UVG with Boost growing strong double-digits and Horlicks performing well. Horlicks was relaunched in two states with NutriMax technology and a zero-added-sugar variant. Coffee continued double-digit momentum. Packaged Foods delivered high-single-digit UVG supported by ketchup, mayonnaise, soups and foodservices.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.