HUL ad spends up nearly 4% as Q1 profit dips 2%

Hindustan Unilever Ltd (HUL) has reported a 10% year-on-year increase in turnover to Rs 17,184 crore for the quarter ended June 30, 2026, driven equally by volume and pricing, even as consolidated profit from continuing operations declined 2.2% year-on-year. The broad-based growth across its portfolio helped the FMCG major deliver its highest quarterly growth in 13 quarters. 

The FMCG major posted underlying sales growth (USG) of 10%, up from 4% in the year-ago quarter, while underlying volume growth (UVG) improved to 5% from 3%. Revenue from operations rose 10.2% year-on-year to Rs 17,149 crore, while total income stood at Rs 17,529 crore.

Consolidated profit from continuing operations declined 2.2% year-on-year to Rs 2,680 crore during the April-June quarter, compared with Rs 2,741 crore a year earlier. However, profit after tax before exceptional items rose 9% to Rs 2,731 crore, with the decline in reported profit attributed to a one-off tax credit in the corresponding quarter last year.

Advertising and promotional expenditure increased 3.6% year-on-year to Rs 1,657 crore as HUL continued to invest behind its brands. The company said it also stepped up investments in AI-led operations, including an AI-enabled distribution centre, while continuing to strengthen its research and development, manufacturing capabilities and omnichannel execution. EBITDA for the quarter rose 8% year-on-year to Rs 3,947 crore, while EBITDA margin stood at 23%.

Home Care remained the company's largest business, reporting revenue of Rs 6,554 crore and underlying sales growth of 14%, its highest growth in three years. The performance was led by Fabric Wash and Household Care, with the latter supported by continued momentum in Vim Liquids and consumer-led innovations.

Beauty & Wellbeing generated revenue of Rs 4,083 crore, recording 12% underlying sales growth with high single-digit volume growth. Hair Care continued its double-digit volume-led growth trajectory, while Premium Skin Care and colour cosmetics registered high single-digit growth. HUL said Minimalist maintained double-digit growth and accelerated sequentially during the quarter, while the Health & Wellbeing portfolio remained soft as the transition of the OZiva business continued.

Personal Care reported revenue of Rs 2,624 crore, with underlying sales growth of 4%. Growth in skin cleansing was largely price-led amid continued palm oil inflation, while premium brands such as Pears and Dove delivered double-digit volume growth. Bodywash and premium oral care also continued to expand.

The Foods business reported revenue of Rs 3,480 crore, posting 7% underlying sales growth with mid-single-digit volume growth. Coffee continued its double-digit volume-led growth, while Boost crossed the Rs 1,000 crore annual turnover milestone based on trailing 12-month sales. Growth in packaged foods was led by Unilever Food Solutions, mayonnaise and international sauces.

Commenting on the results, Priya Nair, CEO and Managing Director, said the Indian economy remained resilient during the quarter despite global geopolitical volatility, supported by fiscal and monetary policy measures. She added that HUL delivered its highest quarterly growth in 13 quarters, with turnover of Rs 17,184 crore and 10% underlying sales growth driven equally by volume and price.

"The performance reflects the strength of our brands, increasing competitiveness of our portfolio, and disciplined execution of our strategic priorities. As our investments in market development, channel expansion and portfolio transformation continue to scale, we are building a stronger, future-fit business. While we continue to navigate the short-term dynamic environment, we remain focused on driving volume-led revenue growth," Nair said.