Hindustan Unilever Sales Hit 14-Quarter High in Q2

Hindustan Unilever reported consolidated revenue of ₹18,226 crore for the quarter ended September 30, marking a 15% rise in underlying sales and a 14-quarter high. The company saw positive demand across both urban and rural markets, with the homecare segment leading growth at 22%. Despite implementing a 7.5% overall price hike, underlying volume increased by 7%.

Net profit for the period reached ₹2,790 crore, and EBITDA rose 8% to ₹4,089 crore. However, EBITDA margins declined 140 basis points to 22.6%. Leadership attributed the performance to India's 7.8% GDP growth and government support measures, though they warned that rainfall deficits affecting rural wages and persistent commodity inflation remain key challenges.

Following the announcement, HUL shares rose up to 3% on the BSE to reach ₹1,864. While the company expects FY27 performance to exceed FY26, several brokerages revised their price targets downward. Jefferies lowered its target to ₹2,350, Nomura to ₹2,100, and JM Financial to ₹2,225, although Jefferies and Motilal Oswal maintained their Buy ratings.