{
  "id": 16853249,
  "title": "HUL sees better FY27 despite margin pressure",
  "url": "https://urgent.news/2026/10/28/hul-sees-better-fy27-despite-margin-pressure",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-28T04:26:25.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/industry/cons-products/fmcg/hindustan-unilever-looks-to-stronger-fy27-but-commodity-inflation-threatens-to-squeeze-margins/articleshow/135251794.cms"
  },
  "original_language": "en",
  "account": "Hindustan Unilever (HUL) anticipates a better financial year 2027 (FY27) despite ongoing pressure on margins due to commodity inflation. This outlook is based on the company's portfolio and channel transformation. The ongoing West Asia war has led to increased input costs across India's FMCG sector, including higher crude-linked derivatives, packaging costs, and edible oil prices. These factors threaten to erode margins, even as demand remains robust.\n\nTo counter these challenges, HUL is focusing on cost cuts and brand promotion to revive its growth, as indicated by its Managing Director, Priya Nair. The company expects its earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin to remain within the range of 22-24% for FY27. Currently, HUL's EBITDA margin stood at 22.6% in the September quarter, marking a 140 basis point decline compared to the previous year.\n\nHUL's underlying sales growth reached a 14-quarter high, with a 15% increase and 7% volume growth during the September quarter. EBITDA rose by 8% year-on-year to Rs 4,089 crore. Despite the cost pressures, profit after tax before exceptional items grew by 9%, reaching Rs 2,796 crore. The company's focus on volume-led and competitive growth has contributed to this profit growth.\n\nHome Care, Beauty & Wellbeing, and Personal Care are the leading growth segments for HUL. Home Care saw a 22% underlying sales growth, driven by double-digit volume growth in fabric wash and household care categories. Beauty & Wellbeing also reported a 16% underlying sales rise, propelled by strong volume growth. Personal Care experienced a 9% underlying sales increase, fueled by market-focused development initiatives for Pears and Dove soap bars and oral care.\n\nHUL's first-half performance for FY27 remained resilient, with turnover of Rs 35,255 crore, a 12% underlying sales growth, and a 6% underlying volume growth. EBITDA grew by 8%, while profit after tax before exceptional items increased by 9%. The board has declared an interim dividend of Rs 19 per share for the financial year ending March 31, 2027.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}