 "HUL Q2 preview: PAT may slip 6% YoY, revenue up 2%; GST cuts to hit margins")
HUL Q2 results preview: Hindustan Unilever (HUL), famously known for its brands Dove, Lifebuoy, Horlicks, is slated to release its second quarter (Q2FY26) results on Thursday, October 23, 2025.
HUL Q2 results 2025: Profit estimates
Brokerages tracked by Business Standard estimate HUL's net profit to decline around 6 per cent year-on-year (Y-o-Y) on average, to ₹2,465.63 crore as compared to ₹2,611 crore. Sequentially, the net profit is expected to slip around 4 per cent from ₹2,569.25 crore in Q1FY26.
HUL Q2 results 2025: Revenue expectations
The company's revenue for the quarter under review is expected to rise 2 per cent in Q2FY26, on average, to ₹15,820 crore as compared to ₹15,508 crore a year ago. However, on a quarter-on-quarter (Q-o-Q) basis, the revenue is poised to marginally decline 0.7 per cent from ₹15,931 crore in Q1FY26.
How do analysts expect HUL to perform in Q2FY26?
Kotak Institutional Equities: The brokerage expects HUL's consolidated business to grow by near-flat to low-single-digit Q2FY26. Analysts anticipate flat/0.5 per cent underlying volume growth/underlying sales growth (UVG/USG), due to transitory impact of goods and services tax (GST) rate cut of 350 basis points (bps), led by home care (HC) growth at 3.8 per cent Y-o-Y, beauty and personal care (BPC) decline of 2 per cent, and 1 per cent decline in Foods and Refreshment (F&R).
Operating income is expected to grow 6 per cent Y-o-Y, largely similar to that of the previous quarter. Gross margin is forecasted to contract 105 bps Y-o-Y to 50 per cent, due to favourable raw material trends, particularly in crude.
The brokerage estimates Earnings before interest, tax, depreciation and amortisation (Ebitda) margin at 22.1 per cent (down 20/140 bps Q-o-Q/Y-o-Y), after factoring in a 10 bps increase in royalty, adverse operating leverage due to channel de-stocking, and higher promotions to support the channel inventory liquidation. Analysts peg Ebitda at ₹3,450.5 crore, as against ₹3,647 crore a year ago.
Nuvama Institutional Equities: Analysts expect underlying consolidated volumes to remain flat Y-o-Y. Consolidated Ebitda is likely to decrease by 5 per cent to ₹3,603.3 crore Y-o-Y in Q2FY26, as per the guidance already given.
Gross margin is forecasted to decline 159 bps Y-o-Y/10 bps Q-o-Q to 50 per cent as the company passed on GST benefits, while Ebitda margin shall fall 142 bps Y-o-Y/11 bps Q-o-Q to 22.4 per cent. HUL’s Ebitda margin guidance of 22–23 per cent continues to hold true this quarter.
Demand trends are likely to remain weaker than Q1FY26 due to the GST transitory impact. Summer-related skin creams and sunscreens have seen some impact from the extended monsoon. However, September and October may see some disruption from GST-related changes, as 40 per cent of HUL's portfolio has shifted to a 5 per cent slab. GST transition could temporarily constrain new inventory availability and impact working capital.
Motilal Oswal Financial Services: The brokerage expects 2 per cent revenue growth, backed by 2.5 per cent volume growth. Consolidated revenue for Q2FY26 is pegged at ₹16,060 crore, as compared to ₹15,508 crore Y-o-Y.
Gross profit margins are expected to fall 90 bps Y-o-Y to 50.7 per cent due to an increase in consumer offers and other schemes at the distributor level. Analysts model a 140 bps contraction in Ebitda margin to 22.4 per cent. They forecast Ebitda at ₹3,650 crore, as compared to ₹3,647 crore Y-o-Y.
Emkay Global Financial Services: Analysts at Emkay see GST transition impacting 4-5 days of primary sales, leading to flat
sales Y-o-Y. The company, through exchange notification, has noted flat to low single-digit growth. This growth slowdown is likely to recover in Q3. Further, the quarter under review also had the impact of low winter loading, given the expected second summer, following an extended monsoon, Emkay noted.
Gross margin is likely to be impacted, down 50 bps Y-o-Y to 50.5 per cent. Ebitda margin is likely to be 22.2 per cent, down 140 bps Y-o-Y, and Ebitda is anticipated to decline 5 per cent to ₹3,445 crore in Q2FY26. Other operating income is likely to be affected by weak liquidity and lower yield.