Hindustan Unilever Reports 15% Sales Growth in Q2 FY27, Declares ₹19 Interim Dividend

Hindustan Unilever Limited (HUL) released its financial results for the quarter ended September 30, 2026, reporting its highest underlying sales growth in 14 quarters. However, the company's stock experienced a sharp decline on the National Stock Exchange (NSE) following the announcement.

During the quarter, the fast-moving consumer goods (FMCG) major posted a consolidated turnover of ₹18,071 crore. This translated to a 15 per cent underlying sales growth (USG), which was supported by a 7 per cent underlying volume growth (UVG). EBITDA for the quarter rose 8 per cent year-on-year to reach ₹4,089 crore, while margins stood at 22.6 per cent, marking a 140 basis points decrease. Profit after tax (PAT) before exceptional items registered a 9 per cent growth to ₹2,795 crore. Reported PAT remained flat at ₹2,796 crore due to a one-off tax-related gain of ₹273 crore recorded in the base period.

Following the performance review, the board declared an interim dividend of ₹19 per share for the financial year 2027. The record date for the dividend has been set for November 12, 2026, with the payment scheduled for November 25, 2026.

Growth was distributed across all four of the company's primary business segments. The Home Care division led the performance with a 22 per cent USG, backed by double-digit volume growth. The Beauty & Wellbeing segment recorded a 16 per cent USG, driven by products in Hair Care and Skin Care. Meanwhile, both the Personal Care and Foods segments delivered a 9 per cent USG each. For the first half of FY27, HUL reported a consolidated turnover of ₹35,255 crore, representing a 12 per cent USG and a 9 per cent growth in PAT before exceptional items.

Despite the operating performance, HUL's stock fell 1.8 per cent to ₹1,779.80 on the NSE by mid-morning trading. The stock touched an intraday low of ₹1,765.50, which is close to its 52-week low of ₹1,758.20. Market data indicates that the stock has declined by approximately 29 per cent over the past year and nearly 23 per cent year-to-date, underperforming the Nifty 50 benchmark.

Looking ahead, company management has highlighted continued commodity inflation in the near term. Nonetheless, HUL has maintained its EBITDA margin guidance in the 22 to 24 per cent range. Management expressed confidence that FY27 performance will outperform FY26, supported by the execution of its 'Winning in New India' strategy.

"Hindustan Unilever's latest quarter highlights an interesting disconnect between operational performance and market sentiment. While achieving a 15 per cent underlying sales growth and strong volume expansion across all segments points to solid underlying consumer demand, the market reaction reflects broader pressures, including margin compression and persistent commodity inflation. For consumer goods businesses, balancing volume growth with cost management remains critical, especially when stock prices are trading near multi-month lows despite positive top-line numbers." — Dr. Shishir Gupta, Founder & CEO, StartupLanes