HUL vs Tata Consumer Products Q4 FY26

HI

HUL

Q4 FY26 · Consumer

HUL delivered 8% revenue growth in Q4 FY26, the highest in 12 quarters, driven by 7% underlying sales growth led by volumes. EBITDA margin at 23.7% came at the higher end of guidance, with PAT before exceptional items at ₹2,711 crore (+4% YoY). Growth was broad-based across segments, with home care and beauty & well-being leading. Management highlighted strong execution in quick commerce, premiumization in personal care, and a turnaround in lifestyle nutrition. For FY27, they expect better performance than FY26 despite geopolitical volatility and input cost inflation of 8-10%. Medium-term margin guidance remains 22.5-23.5%. Key risk: sustained crude inflation and currency depreciation could pressure margins and require further pricing actions.

Guidance read

FY27 to be better than FY26: Management expects FY27 performance to exceed FY26, driven by portfolio transformation and execution improvements. Medium-term EBITDA margin guidance 22.5-23.5%: Margin guidance maintained at 22.5-23.5% for the medium term, with flexibility to operate at lower end if cost pressures persist. Price increases of 2-5% already taken: Calibrated price increases of 2-5% implemented across home care and personal care to offset input cost inflation. ₹2,000 crore capex in premium formats: Capital investment of ₹2,000 crore planned for expanding capacity in premium formats across home care, personal care, and beauty.

Risk read

Key risks include Sustained crude inflation and currency depreciation — Crude-linked commodity costs and rupee depreciation could increase input costs beyond current 8-10% inflation, pressuring margins.; El Niño impact on rural demand — Below-normal monsoon forecast (92%) could affect rural incomes and demand, though reservoir levels and MSPs provide some buffer.; Competitive intensity limiting pricing power — If competitors do not follow price hikes, HUL may need to absorb cost inflation or lose market share, potentially impacting margins.; Mass skincare portfolio drag — Mass skincare (Glow & Lovely, talcum powders) remained subdued, weighing on overall beauty segment growth despite premium strength..

Promise ledger

Of 2 tracked promises, management 1 met, 1 close, 0 missed.

Tata Consumer Products delivered a strong Q4 FY26 with consolidated revenue growing 18% YoY to ₹5,400 crore, driven by broad-based volume-led growth. India business grew 16%, with salt volumes surging and Sampann accelerating 69%. EBITDA margin expanded 100 bps to 14.6%, aided by benign tea costs and operating leverage. Management guided for 50-75 bps margin expansion in FY27, supported by A&P spend normalization (7.5-8.5% of sales) and pricing power. Growth businesses (NourishCo, Sampann, etc.) now contribute 31% of India revenue and are expected to sustain ~30% growth. Key risk: potential broad-based inflation from fuel price increases could pressure margins if not passed through via pricing.

Guidance read

50-75 bps EBITDA margin expansion in FY27: Management reiterated 50-75 bps margin expansion for FY27, driven by operating leverage and benign commodity costs. A&P spend to normalize at 7.5-8.5% of sales: Advertising and promotion spend will be in the 7.5-8.5% range going forward, after a soft Q4. Growth businesses to sustain ~30% growth: Growth businesses (NourishCo, Sampann, etc.) are expected to continue growing at around 30% in the near term. Vietnam soluble capacity expansion online by early 2027: Board approved capacity expansion in Vietnam for solubles, expected to be operational by early 2027.

Risk read

Key risks include Broad-based fuel price inflation — If fuel prices rise broadly, it could lead to cost inflation across the industry, potentially pressuring margins if pricing actions are not taken.; Geopolitical disruption in Middle East impacting exports — Shipping disruptions via Dubai in March impacted international business; management noted normalization in April but risk remains.; Tea price volatility — Management acknowledged difficulty in forecasting tea prices due to climate and weather uncertainties, which could impact margins.; US coffee margin recovery may be delayed — While coffee prices are softening, inventory in the channel may delay margin improvement; competitive pricing actions could also cap upside..

Promise ledger

Scorecard data is being built as historical quarters are processed.