HUL sales rise 15% as inflation clouds demand outlook

Hindustan Unilever reported turnover of ₹18,071 crore for the September quarter, a 15% rise and its strongest underlying sales growth in 14 quarters, The Economic Times reported on Oct. 29.

The result matters because HUL is a widely watched gauge of Indian consumer demand: volume growth held at 7% even as the company raised prices by about 7.5%, while margins narrowed.

“Essentials have a low putdown price. So, at an overall level, these products tend to be less elastic to pricing as compared with other more discretionary categories,” Priya Nair, HUL’s managing director, told The Economic Times.

“The fact that there is volume momentum while we are taking price increases is a very good sign for overall demand,” Nair said. “We have taken a significant price hike of 7.5% and yet we are seeing momentum sequentially on volumes.”

HUL, India’s largest consumer-goods maker, said sales in both urban and rural markets stayed positive, with rural demand improving sequentially, according to the newspaper. Unilever CEO Fernando Fernandez told analysts India benefited from a lower GST-linked comparison base and “significant share gains” in main categories, especially beauty and laundry.

Earnings before interest, tax, depreciation and amortisation, a measure of operating profit, rose 8% to ₹4,089 crore in the September quarter. EBITDA margin was 22.6%, down 140 basis points from a year earlier, while net profit was flat at ₹2,796 crore after a one-off tax-related gain of ₹273 crore in the year-earlier period.

Homecare was HUL’s fastest-growing business, with underlying sales growth of 22% and revenue of ₹6,878 crore. The segment’s operating margin fell to 16% from 19% a year earlier, even as double-digit gains in fabric wash and household care helped counter pressure from petrochemical-linked inputs.

“To have taken a 10% price increase and still deliver 10% underlying volume growth in a category like home care actually depicts the strength of our brand and the resilience of our portfolio,” Chief Financial Officer Niranjan Gupta said, according to The Economic Times.

Beauty and wellbeing revenue rose 16% to ₹4,319 crore, supported by double-digit volume growth in hair care, skincare and colour cosmetics. Personal care revenue increased 9% to ₹2,617 crore, though volumes were flat. Food revenue rose 9% to ₹3,849 crore, with low-single-digit volume growth, while tea remained under pressure at the mass-market end.

The demand picture is not uniform. The newspaper reported that below-normal monsoon rains could weigh on farm output and incomes in some areas, while commodity inflation remains elevated. Nair said “there are pockets of challenge” and that “inflation is the key challenge that you know everyone's looking at.”

Gupta said HUL expects commodity inflation to stay high in the short term, but remains confident of keeping medium-term EBITDA margin within its guided 22% to 24% range. HUL also said it would comply with proposed package-labelling requirements from India’s food safety watchdog, FSSAI.

Source: Trade-press report, The Economic Times, Oct. 29, 2026