Hindustan Unilever (HUVR IN) – Q2FY26 Result Update – Growth bottomed out, expect gradual recovery – Accumulate
Published on 23 Oct 2025
HUL’s new CEO highlighted focus on competitive growth driven by 1) focus on consumer segmentation by transforming core brands into more modern and youthful brands 2) sustained investments behind Future Core & Market Makers, which are growing in double digits 3) Superior product innovations and relaunches with focus on premiumization and 4) taking fewer and bigger bets. We believe HUVR is making a big push in premium segments especially in Beauty and wellbeing by leading category development and to regain lost ground by B2C acquisitions and new launches/brand extensions.
HUL expects mid-single digit volume growth for 2HFY26 on low base in a favorable macro environment. We expect volume/sales and margins to inch up gradually in coming quarters with expected PAT growth to 2HFY26 in mid to high single digits. We expect 6.9% Sales CAGR and 8.3% EPS CAGR over FY26-28 (post ice cream demerger). We assign DCF based target price of Rs2772 (Rs2746 earlier), implying target PE of 53.6x FY28E EPS. Retain Accumulate.
