Hindustan Unilever Shares Rise Following Q2 Financial Results

Shares of Hindustan Unilever Limited (HUL) traded higher on Thursday morning following the release of its financial results for the second quarter. The stock rose ₹28.10, or 1.55 percent, to reach ₹1,843.90 by 12:12 PM. The movement comes a day after the fast-moving consumer goods major posted its performance metrics for the period ending September 30, 2026.

The stock opened the session at ₹1,812.80 and moved to a high of ₹1,864.40. Earlier in the week, on Monday, October 27, the share price had dropped to a fresh 52-week low of ₹1,758.20. Trading volumes during Thursday's session reached 11.18 lakh shares, representing a total value of ₹206 crore. Market data indicated that sell orders continued to outpace buy orders at 56.50 percent versus 43.50 percent, reflecting lingering caution among market participants.

HUL's stock has faced downward pressure over the year, declining 20.55 percent year-to-date and underperforming the Nifty 50's decline of 12.54 percent over the same period. The stock currently trades at a price-to-earnings (P/E) ratio of 28.30, remaining well below its 52-week high of ₹2,526 recorded on October 28, 2025.

For the quarter ended September 30, 2026, HUL reported consolidated revenue of ₹18,071 crore. The company posted an underlying sales growth of 15 percent, marking its highest in 14 quarters. EBITDA grew by 8 percent to reach ₹4,089 crore, resulting in an EBITDA margin of 22.6 percent. Alongside the financial results, the HUL board announced an interim dividend of ₹19 per share, setting the record date for November 12. Management also reaffirmed its medium-term EBITDA margin guidance of 22 to 24 percent.

Brokerage firms offered mixed reactions following the earnings announcement. Motilal Oswal maintained a Buy rating with a target price of ₹2,150, pointing to the 7 percent underlying volume growth as a positive factor while noting margin pressures in the Home Care segment, where gross margins contracted by 400 basis points year-on-year to 47.6 percent. JM Financial also kept a Buy rating with a revised target of ₹2,225, though it reduced its target P/E multiple from 45x to 40x due to broader sector de-rating. Meanwhile, Elara Securities adopted a more cautious stance, maintaining an Accumulate rating while lowering its target price to ₹2,100 from ₹2,230, citing limited visibility on earnings beyond the second half of fiscal year 2027.

"Hindustan Unilever's recent financial performance highlights the resilience of large consumer goods companies even during periods of market volatility. While the 15 percent underlying sales growth and strong revenue numbers provide short-term momentum to the stock, the caution observed in sell orders and brokerage revisions reflect underlying sector-wide pressures, particularly regarding gross margins and cost management. Investors should closely watch how large-cap players navigate margin contractions and consumer demand trends in the coming quarters." — Dr. Shishir Gupta, Founder & CEO, StartupLanes