HUL Q2 ad spends rise over 13% to Rs 3,138 crore

Hindustan Unilever Limited (HUL) has reported a 13.4% year-on-year increase in consolidated advertising and promotion expenses to ₹3,138 crore in Q2 FY27, compared with ₹2,765 crore in the corresponding quarter last year. Consolidated turnover grew to ₹18,071 crore, while underlying sales growth (USG) stood at 15% and underlying volume growth (UVG) at 7%.

Advertising and promotion expenses accounted for 17.4% of consolidated turnover during the September quarter, marginally lower than 17.5% in the year-ago period. The company recorded double-digit, volume-led growth in its Home Care and Beauty & Wellbeing segments, while Personal Care and Foods each reported underlying sales growth of 9%.

HUL’s total consolidated income increased to ₹18,386 crore for the quarter ended September 30, 2026, from ₹16,066 crore a year earlier. Profit before exceptional items and tax rose to ₹3,814 crore from ₹3,702 crore, while profit after tax before exceptional items grew 9% year-on-year.

Consolidated profit after tax stood at ₹2,796 crore, compared with ₹2,694 crore in the corresponding period last year. The reported profit was impacted by exceptional items and a one-off tax-related gain of ₹273 crore in the base period.

Total consolidated expenses increased to ₹14,574 crore during the quarter from ₹12,580 crore in Q2 FY26. Advertising and promotion expenses rose by ₹373 crore year-on-year, while other expenses increased to ₹4,464 crore from ₹4,064 crore.

Consolidated EBITDA grew 8% year-on-year to ₹4,089 crore, with the EBITDA margin at 22.6%, within the company’s guided range.

Among its business segments, Home Care recorded underlying sales growth of 22%, supported by double-digit underlying volume growth. Fabric Wash and Household Care delivered broad-based double-digit growth across brands and formats, while liquids maintained their double-digit growth trajectory. Market development initiatives and calibrated pricing actions contributed to penetration and volume growth.

HUL continued its premiumisation efforts in powders through the Surf excel Easy Wash ₹99 pack. Surf excel and Rin liquids also strengthened their product propositions during the quarter.

Beauty & Wellbeing posted 16% underlying sales growth, backed by double-digit volume growth. Hair Care sustained its double-digit, volume-led performance, with premium hair care products and innovations continuing to outperform. Skin Care and Colour Cosmetics also recorded double-digit, volume-led growth, while Premium Skin Care benefited from double-digit growth in organised trade.

During the quarter, the company expanded Simple’s portfolio with a Barrier Repair range, relaunched Vaseline body lotion with upgraded packaging and positioning, introduced premium body serum lotions under Dove and extended the Minimalist portfolio across Skin Care and Hair Care.

Personal Care recorded underlying sales growth of 9%, led by double-digit growth in Skin Cleansing. Market development initiatives for Pears and Dove bars supported volume-led growth, while bodywash continued to gain penetration through sampling and in-store activations. Oral Care registered low-single-digit underlying sales growth, supported by premium innovations. Lux Bar was also relaunched with updated packaging.

Foods reported 9% underlying sales growth, accompanied by low-single-digit volume growth. Lifestyle Nutrition maintained its double-digit growth momentum, while Packaged Foods recorded broad-based double-digit growth. Coffee registered high-single-digit growth, driven by volumes, and premium tea innovations continued to scale.

During the quarter, Horlicks entered the protein segment with the launch of Horlicks protein powder, while Kissan Condiments refreshed its proposition and packaging.

For the six months ended September 30, 2026, HUL’s consolidated turnover rose to ₹35,255 crore from ₹31,267 crore in the year-ago period. Underlying sales growth for the first half stood at 12%, while underlying volume growth was 6%.

Consolidated advertising and promotion expenses for the six-month period increased to ₹6,138 crore from ₹3,230 crore a year earlier. EBITDA grew 8% year-on-year, while profit after tax before exceptional items increased 9%.

Consolidated profit after tax for the first half stood at ₹5,476 crore, compared with ₹5,462 crore in the corresponding period last year. Profit before exceptional items and tax rose to ₹7,446 crore from ₹6,969 crore.