Hindustan Unilever Limited on Tuesday reported a turnover of ₹17,184 crore for the quarter ended June 30, 2026, its strongest underlying sales growth (USG) in thirteen quarters at 10 per cent, driven equally by volume and price. However, reported Profit After Tax (PAT) declined 2 per cent year-on-year to ₹2,680 crore, owing to a one-off tax credit in the year-ago period. Excluding exceptional items, PAT before exceptional items grew 9 per cent to ₹2,731 crore.EBITDA came in at ₹3,947 crore, up 8 per cent year-on-year, with EBITDA margins at 23.0 per cent, down 40 basis points, but within the company's guided range, as management navigated palm oil inflation and volatile commodity costs for a second consecutive quarter.Segment-wise, Home Care was the standout performer, posting 14 per cent USG, its highest growth in three years, on high-single-digit underlying volume growth (UVG). Revenue for the segment stood at ₹6,554 crore at a 17 per cent margin. Fabric Wash recorded broad-based double-digit growth led by volumes, while Vim Liquids continued to scale with strong double-digit penetration gains.Beauty & Wellbeing reported 12 per cent USG with revenues of ₹4,083 crore and a healthy 28 per cent margin. Premium Hair Care including future-formats outperformed, while Minimalist accelerated its double-digit growth trajectory. The company flagged soft performance in OZiva as it transitions the business.Personal Care was the weakest segment with 4 per cent USG and revenue of ₹2,624 crore at a 20 per cent margin. UVG was a low-single-digit decline as palm oil inflation continued to pressure Skin Cleansing. Premiumisation in Pears and Dove partially offset the drag, with Bodywash delivering another quarter of double-digit growth.Foods delivered 7 per cent USG and revenues of ₹3,480 crore at a 20 per cent margin. Coffee grew double-digits in volume terms while Boost surpassed the ₹1,000 crore annual turnover milestone.The results arrive against a challenging macroeconomic backdrop. Escalating geopolitical instability has driven up Brent crude and crude palm oil input costs, compressing gross margin headroom. Living cost pressures have cooled urban middle-class spending, and demand moderation in Tier-2 and Tier-3 markets has pushed consumers toward ₹5 and ₹10 low-unit packs, a trend management is watching closely.Leading brokerages maintain a broadly constructive outlook. Motilal Oswal and Nuvama hold 12-month target prices in the ₹2,600–₹2,750 range, citing rural volume recovery and premiumisation in fabric wash. Jefferies and Nomura, however, are more cautious at ₹2,550–₹2,760, flagging near-term profit ceiling risks from sustained advertising commitments and competition from D2C brands in urban markets.Looking into the second half of FY27, management guided that FY27 should be better than FY26, with the company's leaner post-ice-cream-demerger structure allowing higher capital allocation toward high-margin Beauty & Wellbeing verticals. Consolidated EBITDA margins are expected to remain around current guided levels as commodity volatility persists in the near term.Published on July 28, 2026