HUL hits 15-quarter high volume growth, but input costs trigger price hikes

MUMBAI: Hindustan Unilever Ltd’s (HUL) volume growth rose to 6% in the January-March quarter, the highest in 15 quarters, even as it cited rising input costs linked to conflict in West Asia and initiated selective price hikes.

India’s largest FMCG company reports 21.3% increase in net profit ₹2,994 crore and 7.6% increase in revenues ₹16,351 crore in Q4. Results exclude split Kwality Walls ice cream business In 2025.

performance rhythm Bloomberg consensus estimates ₹2,612 crore profit and ₹16,270 crore revenue.

Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 6% in the fourth quarter ₹3,841 crore, while margins fell by 50 basis points to 23.7%. The company expects FY27 to outperform FY26 with margins in the range of 22.5-23.5%.

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The growth of manufacturers of brands such as Lux and Lakmé has been driven by premiumization and increased urban demand; high-margin segments contributed disproportionately to revenue.

However, the company began making price increases to offset rising input costs. “We are taking calibrated pricing action in the 2-5% range,” Chief Financial Officer Niranjan Gupta said in the post-earnings briefing on Thursday. “We may see some rebalancing between volume and price growth for consumers in the short term.”

At the same time, Gupta pointed out that HUL’s product categories are relatively inelastic or face low elasticity, “given that we are talking about core categories of daily consumption.”

Chief executive and managing director Priya Nair said in a statement that rising geopolitical tensions had made currencies and commodities unstable, but the company was well positioned to navigate the volatile environment.

The company said its supply chains have not been affected so far. “We are responding with strong operational discipline and securing supplies using our supply network. We have managed production and supplies without any disruption so far this quarter and the next quarter as well,” Gupta said.

“Growth was driven by mixed improvement, with premium and value-added segments contributing disproportionately compared to mass categories, reflecting urban recovery and trade growth trends,” said Sandeep Abhange, research analyst, consumer and mid-cap at LKP Securities.

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Rural demand continues to outpace urban growth, but both generally move together, Gupta said.

Revenue increased 5% in FY26 ₹64,468 crore and net profit remained the same ₹10,652 crore. The board also proposed a final dividend. ₹22 per share, subject to shareholder approval.

The company’s shares closed with a 2.6 percent decrease ₹2,254 per capita on NSE on Thursday, Compared to a decline of 0.74% in the Nifty 50.

Cost pressures

According to Gupta, Home Care is the sector most exposed to input cost pressure, with raw materials such as packaging and surfactants shaping pricing decisions, followed by personal care and beauty.

The company is responding to this situation through price increases and changes in package structures. “We use a combination of optimizing both download price and fill levels,” Gupta said. Fill levels refer to adjustments to the quantity in each package to manage pricing.

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“When you look at price point packages, you see more fill level adjustments, and packages that are not locked into a price point, that’s the discount price,” Gupta added.

Price point bundling is a retail packaging strategy in which a product is designed to be sold at a specific, often psychologically fixed, price; ₹5 or ₹10.

HUL is optimistic about demand despite forecasts of weak monsoon amid emerging El Niño; It suggests higher reservoir levels, increased minimum support prices for crops and wider spread of rainfall as mitigating factors.

“So we see countervailing factors at this point and we see no reason to worry about demand moving forward,” Gupta said.

Segment growth

Home Care It continued to be the locomotive of growth in the 4th quarter, reaching its fastest pace in 11 quarters with a 9% increase, driven by the double-digit increase in Fabric Washing and high single-digit gains in home care. Liquids continued strong double-digit growth.

Beauty and wellness grew 8%, while hair care posted strong double-digit growth, while premium skincare and color cosmetics offset weak audience demand. Personal care rose 5%, boosted by brands such as Dove and Lux, while oral care remained muted despite Closeup gaining share.

The food segment grew 5%, with coffee continuing double-digit growth. lifestyle nutrition Powered by Horlicks and Boost. Throughout the year, each of the Vaseline and Sunsilk brands, ₹Annual sales of 1,000 crore have taken HUL’s billion-rupee brand count to 20.

In March, Reuters It said the company has implemented a global hiring freeze “at all levels” for at least three months amid geopolitical tensions. Regarding India operations, Gupta said HUL “will continue to manage our resources as per the need of the business.”