HUL boosts ad spends to Rs 1,661 crore in Q2 FY26
HUL Q2 FY26 earnings: The maker of Dove, Horlicks and Lakme posted a net profit of Rs 2,694 crore in Q2 FY26, up from Rs 2,595 crore in the corresponding period last year.
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Hindustan Unilever Limited (HUL) on Thursday reported a 3.8% year-on-year (YoY) increase in consolidated net profit for the second quarter of FY26, even as the FMCG major stepped up its advertising investments.
The maker of Dove, Horlicks and Lakme posted a consolidated net profit of Rs 2,694 crore in Q2 FY26, up from Rs 2,595 crore in the corresponding period last year. While, on standalone basis, the company's profit increased to Rs 2,690 crore in Q2 FY26--up 2.9% YoY.
Advertising and promotional (A&P) expenses rose 10.6% YoY to Rs 1,661 crore during the July–September quarter, compared to Rs 1,501 crore in the corresponding quarter in previous fiscal year 2025. HUL's AdEx was marginally higher even on sequential basis. In June quarter Q1 FY26, its ad expenses stood at Rs 1,656 crore.
On standalone basis, HUL spent Rs 1,527 crore on ads and promotion during Q2 FY26 as against Rs 1,464 crore in Q2 FY25.
Revenue from operations grew 2.1% YoY to Rs 16,034 crore. Among segments, home care led the contribution with Rs 5,664 crore, followed by foods at Rs 3,869 crore, beauty & well-being at Rs 3,732 crore, and personal care at Rs 2,425 crore.
The total sales of HUL stood at Rs 16,061 crore--up 2% during the quarter, while Earnings before interest, tax, depreciation and amortization (EBITDA] for the quarter declined to Rs 3,729 crore YoY compared to Rs 3,793 crores in Q2 FY24. Notably, the EBITDA margin declined by 90 bps as against Q2 FY25 at at 23.2% in the current fiscal year.
HUL on GST impact
HUL informed the exchanges that around 40% of its product portfolio has transitioned to the 5% GST slab. The company expects this move to create a consumption tailwind in the third quarter, supported by higher disposable incomes, product premiumization, and improving consumer sentiment.
However, HUL said its Q2 sales were temporarily impacted due to the GST rejig, as consumers deferred purchases in anticipation of price reductions across several categories.
The Centre simplified the Goods and Services Tax (GST) structure effective September 22, introducing significant rate reductions across key sectors of trade and commerce. Prices of several commodities, particularly in the FMCG sector, were revised downward to the 5% GST slab.
