Hindustan Unilever (HUVR IN) – Q4FY26 Result Update – Demand steady, Geopolitical cloud on margins – ACCUMULATE
Published on 30 Apr 2026
We increase FY27/FY28 EPS estimates by 2.0/2.2% led by 1) strong probability of mid-single digit volume growth in FY27/28 due to gains from GST reduction and market development. 2) 2-5% price increase across portfolios to neutralize cost pressures, which will increase sales growth 3) Premiumization across personal, beauty and home care to help sustain margins in tough economic environment.
HUL is facing 8-10% RM inflation and can face margin pressure in 1H27, however lower base in 1H26 will cushion profitable growth. HUL continues to focus on new channels, premium products and innovations that will enable increased traction across categories. We expect more acquisitions to fill in product gaps as Minimalist and Oziva are scaling up and have achieved an ARR of Rs11bn+.
We estimate a CAGR of 8.5% in Sales and 9.4% in PAT over FY26-28. We assign DCF based target price of Rs2454 (Rs2431 earlier). We expect moderate returns post recent rally, but HUL can be accumulated on declines for double digit returns in FY27.
