Hind. Unilever

Hindustan Unilever reported a robust Q4 FY26 with an 8% Consolidated Revenue Growth and 7% Underlying Sales Growth (USG), primarily volume-driven, marking its highest quarterly growth in 12 quarters. The EBITDA grew 6% year-on-year, achieving a margin of 23.7%, which was at the higher end of the company's guidance. For the full financial year 2026, HUL recorded a turnover of ₹63,763 crores, with 5% USG and 4% Underlying Volume Growth (UVG), demonstrating a consistent acceleration in growth momentum, particularly in the second half of the year.

The company committed ₹2,000 crores in capex investments towards premium formats within its Beauty and Home Care segments, aligning with its strategy to focus on high-growth potential areas. This capital allocation is part of a broader portfolio transformation that includes the demerger of Ice Cream and strategic investments in brands like OZiva and Minimalist. The Beauty & Wellbeing segment, including these new brands, has quadrupled its business over the last year, reaching an annual revenue run rate of ₹1,200 crores, with the premium skin beauty portfolio (Minimalist, Simple, OZiva, Nexus) now operating at an ARR of approximately ₹1,400 crores.

HUL intensified its omni-channel execution, expanding its direct coverage in General Trade by approximately 2 lakh outlets and investing in dedicated infrastructure for speciality retail channels. E-commerce continued to be a strong growth engine, delivering over 25% growth during the financial year. A dedicated Quick Commerce organization was established, leading to a significant improvement in customer availability, which increased by approximately 1,400 basis points, showcasing the company's agility and strategic focus on evolving retail channels.

In Q4 FY26, Home Care delivered a strong 9% USG, its best performance in 11 quarters, with the liquids portfolio crossing ₹4,000 crores turnover and gaining share. Personal Care achieved 5% USG, driven by premiumization, as brands like Dove and Pears recorded double-digit growth, and Bodywash gained approximately 400 basis points in market share. Lifestyle Nutrition demonstrated a significant turnaround, achieving double-digit UVG in the second half of FY26, attributed to pack-price architecture changes, expansion into new formats like RTD and protein, and the relaunch of Horlicks.

Management noted stable demand conditions, supported by a favorable macroeconomic environment and lower headline inflation. While acknowledging potential short-term volatilities from geopolitical situations and El Nino, they expressed confidence in FY27 outperforming FY26. Counter-factors such as significantly higher reservoir levels, increased Minimum Support Prices (MSP), and record grain stocks are expected to mitigate potential negative impacts on rural demand, which currently shows parity with urban demand.

Despite heightened commodity inflation, particularly in crude-linked derivatives, HUL implemented calibrated price increases ranging from 2% to 5% across Fabric Wash and Household Care in the June quarter. The company is actively accelerating its savings funnel and optimizing its P&L, including non-working media. Management reiterated its mid-term margin guidance of 22.5% to 23.5%, emphasizing flexibility within this band to navigate cost scenarios while prioritizing competitive volume-led growth.

Addressing investor queries regarding HUL's continued focus on Foods despite global Unilever's divestment, management clarified that HUL's Foods business is distinct and tailored to the Indian market. It comprises Beverages (Tea, Coffee), Lifestyle Nutrition, and local brands like Kissan, which are deeply entrenched and offer significant growth opportunities in India. This strategic focus on the unique Indian market dynamics justifies the continued importance of the Foods portfolio for HUL's overall strategy.