HUL adex rises 9.7% QoQ to Rs 1,656 crore in Q1 FY2026

New Delhi: FMCG major Hindustan Unilever (HUL) allocated Rs 1,656 crore to advertising and promotions in Q1 FY2026, compared to Rs 1,681 crore in the same quarter last year.

The company’s adex improved by 9.7% on a QoQ basis as it allocated Rs 1510 crore in the March quarter.

Altogether, HUL allocated Rs 6,199 crore in FY2025.

Hindustan Unilever (HUL) posted a consolidated underlying sales growth (USG) of 5% and underlying volume growth (UVG) of 4% for the first quarter of FY26, despite operating margins coming under pressure. 

Profit after tax before exceptional items (PAT bei) declined by 5%, while overall profit after tax rose by 6%. The variance was attributed to a one-off impact from the re-estimation of tax provisions relating to potential disallowance of certain prior-year expenses.

On a standalone basis, HUL reported 4% underlying sales growth, 3% underlying volume growth, and 8% growth in profit after tax.

This focused investment approach, according to HUL, helped deliver broad-based and competitive growth, resulting in a consistent increase in turnover-weighted market share.

Rohit Jawa, CEO and Managing Director, said, “FMCG demand has continued to remain stable, with a gradual uptick in recency. Encouraged by favourable macroeconomic indicators, we strategically stepped up our investments to effectively advance our portfolio transformation agenda in this quarter. As a result, we delivered competitive, broad-based growth with an Underlying Sales Growth of 5%, driven by an Underlying Volume Growth of 4%, at a consolidated level.

“Going forward, I expect this gradual recovery to be sustained. I am confident that the ASPIRE strategy will further strengthen our presence in segments and channels of the future, powered by unmissably superior brands, heightened innovation intensity and digital media models, to deliver competitive volume-led growth and create long-term shareholder value.”

Segment performance

Home care:

The segment recorded 4% USG, driven by high-single digit UVG, even as negative pricing was implemented to pass on commodity price benefits to consumers. Fabric Wash volumes grew in mid-single digits, led by Surf Excel, while Household Care registered double-digit UVG, propelled by the dishwash category. HUL also expanded its liquids portfolio, with Surf Excel Matic Express launched for short wash cycles and Vim Pro Clean Liquids relaunched with RhamnoTech technology.

Beauty & wellbeing:

This segment delivered 7% USG and low-single digit UVG. Hair Care grew in mid-single digits, boosted by the Future Core and Market Makers portfolio. Skin Care and Colour Cosmetics achieved low-single digit growth, led by brands like Ponds, Vaseline, and Simple. The Health and Wellbeing segment, particularly OZiva, saw turnover triple year-on-year. Channel innovations and new launches, including Nexxus and the Dove Peptide Bond Strength range, further strengthened the portfolio.

Personal care:

Growth stood at 6%, with price adjustments in response to commodity inflation. Skin cleansing posted mid-single digit growth, driven by premium bars, while Bodywash and Oral Care (notably Closeup) also registered robust growth. The quarter saw the relaunch of Liril, Dove Serum Bar, and an upgraded Closeup line.

Foods:

The Foods business delivered 5% USG with mid-single digit UVG. The Beverages segment (Tea and Coffee) saw double-digit growth, with tea achieving high-single digit gains through price and volume increases. Lifestyle Nutrition maintained its market leadership, and Packaged Foods continued to perform strongly. Ice Cream volumes grew at a high-single digit pace, although early rains affected performance. Product launches included Red Label Instant Spiced Tea Mix and Boost Protein.

Outlook

While margin pressure persisted due to stepped-up investments, HUL remains optimistic about sustained recovery, backed by portfolio transformation and innovation. The company said it will continue focusing on volume-led growth, channel expansion, and premiumisation across categories.