Mumbai, October 24, 2025 — Hindustan Unilever Ltd. (HUL), India’s largest fast-moving consumer goods (FMCG) company, reported a mixed set of results for the second quarter ended September 2025, with stable revenue and profit aided by one-time gains. The company’s new Managing Director and CEO, Priya Nair, underscored a strategic shift toward volume-led revenue growth, signalling a renewed focus on market expansion and long-term sustainability.
Financial Performance Overview
For the September quarter, HUL reported a net profit of ₹2,694 crore, surpassing market estimates of ₹2,480 crore. The profit included a one-time gain of ₹273 crore, arising from the resolution of tax matters between UK and Indian authorities. In comparison, there was no such gain in the same period last year.
Revenue from operations stood at ₹15,585 crore, marking a modest 0.5% year-on-year growth, slightly below analysts’ expectations of ₹15,850 crore. Despite the subdued topline, profitability remained resilient.
The company’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) came in at ₹3,563 crore, reflecting a 2.3% decline from the previous year, aligning with market projections. EBITDA margin stood at 22.9%, down 60 basis points from last year, but higher than expectations of 22.5%. Management reiterated its medium-term margin guidance in the 23–24% range, with an anticipated improvement of 50–60 basis points following the planned demerger of the ice cream business.
Operational and Strategic Commentary
Priya Nair, in her first quarterly address as CEO, emphasized the company’s commitment to “volume-led, sustainable revenue growth” across key categories. She highlighted that the near-term focus will be on reigniting rural demand, strengthening distribution, and driving innovation-led volume expansion amid evolving consumer sentiment.
The company also acknowledged temporary headwinds from GST rate reforms, which led to trade and channel disruptions. HUL noted that 40% of its portfolio has shifted to a lower 5% GST slab from the earlier 18%, causing a short-term impact on sales volumes. However, the management expects gradual recovery from November as the market stabilizes post-transition.
Outlook
While overall growth remains muted, HUL’s management remains optimistic about improving demand dynamics in the second half of FY26. The company’s strategic focus on cost optimization, premiumisation, and rural market penetration is expected to support volume recovery.
With a stable financial base and strong brand equity, HUL continues to position itself for sustained growth in an increasingly competitive FMCG landscape.
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