HUL reports 7% volume growth in Q2 FY27, revenue rises 14.7%
Hindustan Unilever Ltd (HUL) posted a 7% underlying volume growth in the second quarter of FY27, the highest in multiple quarters, while revenue increased 14.7% to ₹18,037 crore. Net profit remained nearly flat at ₹2,796 crore, and Ebitda margin narrowed to 22.6%.
Editor, Lazyfounder
TABLE OF CONTENTS
Volume and revenue growth lead HUL’s Q2 performance
Hindustan Unilever Ltd (HUL) reported a 7% underlying volume growth for the second quarter of FY27, the highest since the first quarter of FY22, according to Mint. Revenue rose 14.7% year-on-year to ₹18,037 crore, surpassing Bloomberg’s estimate of ₹17,582.4 crore. Underlying sales growth reached 15%, the strongest in 14 quarters.
Profit and margins reflect cost pressures
Net profit for the quarter was nearly flat at ₹2,796 crore, slightly above analysts’ expectations of ₹2,784.4 crore. The company attributed the stagnant profit to one-off tax-related gains of ₹273 crore in the base period. Ebitda grew 8% to ₹4,089 crore, but the Ebitda margin contracted by 140 basis points to 22.6%, reflecting ongoing cost pressures.
Segment performance highlights resilience and challenges
HUL’s home care segment, which includes Surf Excel detergent, delivered 22% underlying sales growth, driven by double-digit volume growth across liquids, powders, and bars. Vim Liquids continued its strong performance with volume-led growth. The beauty and wellbeing segment reported 16% underlying sales growth, led by double-digit volume increases in hair care, skin care, and colour cosmetics. Premium skin care sustained its growth trajectory, supported by organized trade.
The foods segment saw 9% underlying sales growth, with low-single-digit volume growth. Packaged foods and coffee drove this performance, with the latter reporting high-single-digit growth. However, Oziva, an acquired brand in the health and wellbeing segment, saw subdued performance, while Minimalist accelerated growth through innovation.
Market reaction and outlook
HUL’s shares fell 2.9% following the earnings announcement, reflecting investor sensitivity to margin compression. The company declared an interim dividend of ₹19 per share for the quarter. Priya Nair, CEO of HUL, emphasized resilience in demand, supported by healthy macro indicators, and projected FY27 to be stronger than FY26, driven by portfolio and channel transformation.
What this means
Lazyfounder analysis — our interpretation, not reported fact.
HUL’s Q2 results signal a mixed outlook for India’s FMCG sector. The 7% volume growth, the highest in nearly three years, indicates a recovery in consumer demand, particularly in rural markets where HUL has a significant presence. However, the 140-basis-point contraction in Ebitda margin underscores persistent cost pressures, including commodity inflation and operational expenses. For founders and operators, this dual trend—recovering volumes alongside margin pressures—highlights the need to balance growth strategies with cost efficiency.
Related on Lazyfounder
Sources
- Mint (Technology) · 2026-10-28
HUL Q2 results: Volumes grow at multi-quarter high of 7%
This story is an original summary drafted with AI by Lazyfounder from the reporting listed above and checked by automated validation. Facts are attributed to their original publishers; sections marked as analysis are Lazyfounder's. Where a source is in another language, facts were machine-translated and quotations are reported, not reproduced. Read the original coverage via the links, and see our AI policy and corrections policy.
About the author
Editor, Lazyfounder
Tarun Mottlia edits LazyFounders, covering Indian startups, funding rounds, AI and product launches. Every story on the site is AI-assisted and checked against its cited sources before publication.
More stories by Tarun MottliaGet the LazyFounder Brief
Startup, funding and AI news in a five-minute read. Join the early-access list.
