HUL raises ad spend to Rs 1,661 crore in Q2FY26, up 9.6% YoY

New Delhi: FMCG major Hindustan Unilever (HUL) allocated Rs 1,661 crore to advertising and promotions in Q2FY2026, compared to Rs 1,501 crore in the same quarter last year. As a result, the AdEx grew 9.63% year-on-year. 

On a sequential basis, however, the increase was marginal. In the previous quarter this fiscal, HUL spent a total of Rs 1,656 crore, marking a mere 0.3% jump in the AdEx. On a half-yearly basis, the FMCG major shelled out Rs 3,317 crore in advertising and promotional expenses. 

Hindustan Unilever (HUL) posted a consolidated sales growth of 2% on a sequential basis to Rs 16,061 crore and a flat underlying volume growth in the second quarter of FY26. 

Profit after tax before exceptional items (PAT bei) declined by 4%, while overall profit after tax rose by 4%. The variance was primarily driven by one-off positive impact pursuant to resolution of prior years’ tax matters between UK and Indian tax authorities.

Priya Nair, CEO and Managing Director, said, “We delivered a competitive performance with an Underlying Sales Growth of 2% and an EBITDA margin of 23.2% in the quarter. The latest GST reforms are a positive step by the Government to drive consumption, expected to increase disposable income and improve consumer sentiment.

However, the quarter saw a transitory impact as the market adjusted to these changes. We anticipate normal trading conditions starting early November, once prices stabilize, paving the way for a gradual and sustained market recovery.

“Looking ahead, we are determined to accelerate our portfolio transformation by radically sharpening our consumer segmentation, being bolder in transforming our core brands to make them more modern, desirable and youthful, future-proofing our marketing & sales capabilities by enabling superior online brand discovery & fulfillment and investing disproportionately to scale our high-growth demand spaces. We believe these key priorities, coupled with a supportive macroeconomic environment, will position us to accelerate volume-led growth in the mid-to-long term.” 

Segment performance

Home care:

HUL’s Home Care segment delivered mid-single-digit UVG, offset by earlier price reductions, resulting in a flat USG. The Fabric Wash portfolio recorded mid-single-digit volume growth, driven by strong double-digit growth in liquids, supported by successful innovations and competitive pricing actions. Household Care saw double-digit UVG, led by the dishwash liquid category.
During the quarter, the company launched Comfort Perfume Deluxe, a premium fabric conditioner range inspired by award-winning fragrances, featuring a unique perfume-first formulation designed to provide a sophisticated scent experience for clothes.

Beauty & wellbeing:

The Beauty & Wellbeing division delivered 5% USG, led by robust growth in Skin Care and Health & Wellbeing, partially offset by GST-related moderation in Hair Care. Despite the temporary GST impact, Hair Care continued to strengthen its market leadership.

The Skin Care category, including Colour Cosmetics, grew in high single digits, supported by continued momentum in its Future Core and Market Makers portfolio and well-executed winter loading ahead of the season. Channels of the Future maintained its double-digit growth trajectory, while Health & Wellbeing sustained strong momentum, driven by OZiva’s triple-digit growth.

Key launches during the quarter included Pond’s Hydra Miracle Ultralight Biome moisturiser, Vaseline Cloud Soft (formulated for Indian facial skin), and OZiva Phyto Ceramides + Collagen Builder, a science-backed ingestible skincare supplement.

Personal care:

The Personal Care segment reported flat turnover growth, primarily due to the GST rate transition. Skin Cleansing delivered a competitive performance, led by double-digit growth in premium soaps, while Bodywash strengthened its market position.

In Oral Care, turnover saw a marginal decline, though Closeup posted low-single-digit growth. The company continued its premiumisation focus, re-launching Pears with refreshed packaging and proposition, and expanding the Lux International soap range.

Foods:

HUL’s Foods business delivered 3% USG with low-single-digit UVG. The Beverages segment, comprising Tea and Coffee, grew in double digits. Tea reported high-single-digit growth, driven by a healthy mix of price and volume, while Coffee continued its strong double-digit growth momentum.

The company also observed early green shoots in Lifestyle Nutrition, with sustained volume growth. However, turnover declined owing to price adjustments made in previous quarters to refine pack-price architecture. Packaged Foods performance remained subdued amid the GST transition, while Ice Cream turnover declined year-on-year due to prolonged monsoon conditions and GST changes.