HUL Q2 ad spends decline 9.3% to ₹1,481 crore

Hindustan Unilever Limited (HUL) reported a 9.3% year-on-year decline in consolidated advertising and promotion (A&P) expenses to ₹1,481 crore for the September quarter of FY27, compared with ₹1,632 crore in the corresponding period last year. For the six months ended September 30, 2026, A&P expenditure stood at ₹3,138 crore, down 2.8% from ₹3,230 crore a year earlier.

The company’s consolidated turnover stood at ₹18,071 crore during the quarter, with underlying sales growth (USG) of 15% and underlying volume growth (UVG) of 7%. The company recorded its highest underlying sales growth in 14 quarters.

A&P expenses accounted for approximately 8.2% of quarterly turnover, compared with 10.4% in the year-ago period.

HUL’s total consolidated income increased to ₹18,386 crore in Q2 FY27 from ₹16,066 crore in the corresponding quarter last year. Total expenses rose to ₹14,574 crore from ₹12,580 crore.

Other expenses for the September quarter increased to ₹2,249 crore from ₹2,063 crore a year earlier. For the first half, other expenses stood at ₹4,464 crore, compared with ₹4,064 crore in the corresponding period last year.

Consolidated EBITDA grew 8% year-on-year to ₹4,089 crore, while the EBITDA margin stood at 22.6%. Profit before exceptional items and tax increased to ₹3,812 crore from ₹3,483 crore in the year-ago quarter. Reported profit before tax stood at ₹3,814 crore, compared with ₹3,702 crore.

Profit after tax from continuing operations was ₹2,796 crore, against ₹2,791 crore in the corresponding quarter last year. Consolidated profit after tax, including discontinued operations, stood at ₹2,796 crore, compared with ₹2,694 crore a year earlier.

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 double-digit growth across brands and formats, while liquids sustained their double-digit growth trajectory. The company attributed the performance to market development initiatives and calibrated pricing actions.

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

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

During the quarter, HUL 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 expanded the Minimalist portfolio across Skin Care and Hair Care.

Personal Care reported 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 strengthen penetration through sampling and in-store activations. Oral Care recorded low-single-digit underlying sales growth, supported by premium innovations. Lux Bar was also relaunched with updated packaging.

Foods recorded underlying sales growth of 9%, accompanied by low-single-digit volume growth. Lifestyle Nutrition maintained its double-digit growth momentum, while Packaged Foods delivered broad-based double-digit growth. Coffee registered high-single-digit growth, driven by volumes, while 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 stood at ₹35,255 crore, with underlying sales growth of 12% and underlying volume growth of 6%. Consolidated EBITDA increased 8% year-on-year, while profit after tax before exceptional items grew 9%.

Profit before exceptional items and tax for the first half rose to ₹7,519 crore from ₹6,875 crore in the corresponding period last year. Consolidated profit after tax stood at ₹5,476 crore, compared with ₹5,462 crore a year earlier.