Hindustan Unilever's Q4FY26 Performance Beats Consensus Estimates

Hindustan Unilever’s (HUL) fourth quarter (Q4FY26) consolidated operating performance beat consensus estimates due to lower overheads. Consolidated volume growth was 6 per cent, with high-single digit unit value growth (UVG) in Home Care (HC) & Foods, along with mid-single digit UVG in Beauty & Wellbeing (B&W). Overall demand was stable with rural and urban markets growing at similar rate.Gross margin deteriorated quarter-on-quarter (Q-o-Q) by 110 basis points to 50.4 per cent. But tighter overheads pushed consolidated operating profit margin up 40 basis points to 23.5 per cent (as a percentage of sales and other operating income). During the quarter, the company undertook 2-5 per cent price hikes and may go through another round to offset commodity inflation.Consolidated turnover for Q4FY26 grew by 4.3 per cent Y-o-Y to ₹16,350 crore. Operating profit was up 6.1 per cent Y-o-Y at ₹3,840 crore. Recurring net profit grew 3.6 per cent Y-o-Y to ₹2,700 crore, aided by lower effective tax rates. Advertising and promotion cost was down 40 basis points Y-o-Y to 9.2 per cent and other expenses and employee cost were down 80 basis points and 30 basis points Y-o-Y, respectively. About ₹3,500 crore were deployed in bolt-on acquisitions in FY26, including Minimalist and Oziva, which are digital-first, premium beauty platforms. ₹2,000 crore capex is allocated for expanding capacity in liquid formats across home care, personal care and beauty.