HUL volume growth hits multi-quarter high of 7% in second quarter

what happened

Hindustan Unilever said in stock exchange filings that its underlying volume growth in Q2 FY27 reached 7%, the highest since Q1 FY22, when it hit 9%, according to Moody's, which carried the report from Mint. Revenue rose 14.7% to Rs 18,037 crore, while consolidated net profit for the three months to September 30 was Rs 2,796 crore versus Rs 2,791 crore a year earlier.

Profit was flat because the base period included one-off tax-related gains of Rs 273 crore. Before exceptional items, profit after tax grew 9%. EBITDA rose 8% to Rs 4,089 crore, but the margin narrowed 140 basis points to 22.6%. Shares dropped as much as 2.9% to Rs 1,765.50 on the NSE after the results.

The company said commodity inflation was expected to continue in the short term and expects FY27 to be better than FY26.

why it matters

Strong volume growth alongside a weaker margin suggests the company is buying growth at the cost of profitability, so investors will watch whether it can sustain volumes without a further rise in input costs. For India's consumer sector, the results point to resilient demand.

market impact

HUL and Indian consumer stocks: strong volumes support demand, but margins are under pressure

• ↔HUL shares mixed — volume and revenue growth offset by a narrower EBITDA margin

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