Promises
3 promises
Promise Tracker
0 delivered, 0 close, 3 missed.
View Promises →Hindunilvr Ltd — Q2 FY26
HUL reported Q2 FY26 revenue of INR 16,061 crore with 2% underlying sales growth, impacted by GST transition disruptions and prolonged monsoon.
neutral
medium
✓ Verified against BSE filing
2-Minute Summary
✦ AI-Generated from Full Transcript
HUL reported Q2 FY26 revenue of INR 16,061 crore with 2% underlying sales growth, impacted by GST transition disruptions and prolonged monsoon. EBITDA margin contracted 90bps YoY to 23.2% as the company invested 80bps more in A&P. PAT before exceptional items declined 4%, while reported PAT grew 4% due to a one-off tax resolution. Home care delivered mid-single-digit volume growth, beauty & well-being grew 5%, but personal care was flat due to GST. Management expects normal trading from November and H2 growth to be better than H1. The ice cream demerger is on track for December, adding 50-60bps to margins. Key risks include prolonged GST disruption and weather impact on winter categories.
HUL ने दूसरी तिमाही (जुलाई-सितंबर) में 16,061 करोड़ रुपये की कमाई की। बिक्री में 2% की बढ़ोतरी हुई, लेकिन GST बदलाव और लंबी बारिश से असर पड़ा। कंपनी का मुनाफा (EBITDA) पिछले साल के मुकाबले 0.9% कम होकर 23.2% रह गया, क्योंकि उसने विज्ञापन पर ज्यादा खर्च किया। असली मुनाफा (PAT) 4% घटा, लेकिन एक बार के टैक्स सेटलमेंट से रिपोर्टेड मुनाफा 4% बढ़ा। घरेलू सामान की बिक्री अच्छी रही, ब्यूटी प्रोडक्ट्स 5% बढ़े, लेकिन पर्सनल केयर फ्लैट रहा। कंपनी को उम्मीद है कि नवंबर से कारोबार सामान्य होगा और दूसरी छमाही पहली से बेहतर रहेगी। आइसक्रीम बिजनेस को अलग करने की योजना दिसंबर तक पूरी होगी, जिससे मुनाफा 0.5-0.6% बढ़ेगा। मुख्य जोखिम: GST का लंबा असर और सर्दियों के उत्पादों पर मौसम का प्रभाव।
Promises0 met · 3 missedRisks4 trackedTranscriptfull text
Research workspace
Focused Modules
Risks
4 risks
Risk Intelligence
Prolonged GST disruption
View Risks →
Transcript
Full text
Call Transcript
Full transcript text is available on this route.
Read Transcript →Quarter Snapshot
Underlying Sales Growth (USG)
2%
N/A
Quarterly USG was 2%, price-led, with volume growth impacted by GST transition.
Underlying Volume Growth (UVG) - Home Care
Mid-single-digit
N/A
Home care delivered mid-single-digit volume growth on a strong base of high single-digit growth.
A&P Spend YoY Change
+80 bps
+80 bps YoY
Advertising & promotion spend increased 80 bps year-on-year as part of investment in brands.
Gross Margin Sequential Improvement
50.9%
+130 bps QoQ
Gross margin improved 130 bps sequentially as transitory price-cost gap moderated.
What Changed vs Last Quarter
NEW
H2 growth better than H1
Management expects second half of FY26 to deliver better growth than first half, driven by improving macros and internal initiatives.
UPDATED
EBITDA margin guidance 22%-23%
Near-to-mid-term EBITDA margin guidance remains 22%-23%, with ice cream demerger adding 50-60 bps to reported margin from Q3.
UPDATED
Low single-digit price growth expected
If commodity prices remain at current levels, management expects low single-digit price growth going forward.
UPDATED
Ice cream demerger timeline
Ice cream demerger expected to complete in December quarter, with listing in Q4 FY26, subject to regulatory approvals.
DROPPED
First half FY26 better than second half FY25
Growth guidance unchanged: H1 FY26 expected to be better than H2 FY25, with gradual recovery sustained.
NEW RISK
Prolonged GST disruption
GST transition impact may extend beyond October, with trade restocking taking a couple of months to normalize.
NEW RISK
Weather impact on winter categories
Prolonged monsoon and potential weak winter could dampen demand for seasonal products like skincare and ice cream.
NEW RISK
Competitive pressure in core categories
Analyst raised concern about digital-first competition and need to focus on mid and bottom of pyramid; management acknowledged need for sharper segmentation.
NEW RISK
Slow premiumization in body wash
Body wash liquids penetration remains at only 2%, indicating slower adoption despite management's focus on premiumization.
RISK GONE
Sustained competitive intensity in home care
Management acknowledged price decreases in home care due to both commodity deflation and competitive pressures, which could pressure margins and pricing power.
RISK GONE
Delayed recovery in Glow & Lovely and Lifebuoy
Both brands remain in decline despite relaunches; management expects improvement over 'a few quarters' but no specific timeline, posing risk to Beauty & Wellbeing growth.
RISK GONE
Transitory gross margin gap may persist
Analyst questioned the widening gap between NMI and pricing; management termed it transitory but acknowledged it could take time to normalize, especially if commodity prices turn inflationary.
RISK GONE
Execution risk in Minimalist integration
Minimalist acquisition closed in April; synergies in R&D, supply chain, offline distribution, and international expansion are yet to be fully realized, with no quantified targets provided.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY25, Q3 FY25, Q4 FY25
Inflation in palm oil, tea, and coffee not fully priced in, while deflation in crude oil is passed on quickly, creating a price-cost gap.
Mentioned in Q1 FY25, Q1 FY26
Management acknowledged price decreases in home care due to both commodity deflation and competitive pressures, which could pressure margins and pricing power.
Mentioned in Q1 FY25, Q2 FY25
Management aims to keep EBITDA margin at current ~23.8% levels, with some basis points fluctuation, through productivity savings and calibrated pricing.
Mentioned in Q1 FY26, Q3 FY25
Minimalist acquisition closed in April; synergies in R&D, supply chain, offline distribution, and international expansion are yet to be fully realized, with no quantified targets provided.
Mentioned in Q1 FY25, Q2 FY25
Management expects low single-digit price growth in the coming quarters due to commodity inflation, while maintaining competitive price-value equation.
Fast read
Guidance and risk preview
Management expects second half of FY26 to deliver better growth than first half, driven by improving macros and internal initiatives.
GST transition impact may extend beyond October, with trade restocking taking a couple of months to normalize.
View Risks →