Hindustan Unilever Ltd. has shifted its strategic focus from 'Winning in Many Indias' to 'Winning in New India' as the FMCG major accelerates its growth trajectory after two years of sluggish growth. According to the company's latest Capital Markets Day presentation, HUL is now targeting volume-led profit growth through increased consumption, premiumisation, and expansion into new categories. The company's value creation model is designed to deliver volume-led profit growth, with EBITDA margins targeted in the medium term range of 22-24%. As per the presentation, execution will be powered by three key enablers: crafting desirable brands, accelerating a future-fit go-to-market strategy, and building AI as a distinctive competitive moat. The company emphasizes that its talent remains the foundation of HUL's success and the driving force behind long-term value creation.
Hindustan Unilever Ltd. plans to increase productive capital expenditure to 3% of turnover from around 2% as the FMCG major steps up investments to defend market share amid stiff competition from new-age brands and changing shopping patterns. According to the company's Capital Markets Day presentation submitted to stock exchanges, the higher capex will be part of a broader capital allocation framework that also includes portfolio reshaping and shareholder payouts, while maintaining its focus on 100% cash conversion. Over the last five years, total capex for growth & savings was 2% of turnover, with the company reporting an annual turnover of ₹63,763 crore in FY26. HUL has already reshaped its portfolio through significant moves including the disposal of Pureit, the demerger of its ice cream business and the divestment of Nutritionalab. The company will unlock an incremental 500 basis points through richer premium mix, operating leverage, new multi-year cost-savings programme and AI-led media effectiveness to deploy into priority growth areas.
HUL said its premium brands receive twice the investment, with the company investing disproportionately in its premium portfolio. The company is investing two times more in premium brands while spending over 60% of media spending on digital channels. As reported in the Capital Markets Day presentation, HUL's market share is growing at a higher pace in premium segments, at 1.3 times that of its mass-segment products, quoting NIQ (formerly known as Nielsen), MAT (moving annual total) May 26. The company is leading the market-making of under-penetrated segments including hair masks, suncare, body wash, dishwasher liquid, laundry liquid and face cleansing. Laundry liquids is on the tipping point for scale, with HUL having a repeatable and proven market-making model. The company has set a target to generate 500 basis points of 'fuel' to reinvest in funding its core growth pools, and aims to expand its most profitable premium lines 50% faster than its core everyday products. HUL will invest 20% of incremental turnover (delta) in new spaces as part of its portfolio reshaping strategy, continuing to pivot towards high growth spaces by extending existing brands, introducing new brands from Unilever and pursuing Bolton acquisitions.
Hindustan Unilever Ltd. registered a revenue of ₹63,763 crore in FY26 and has 21 brands in its portfolio, each with turnover of more than ₹1,000 crore. The company sells 85 billion packs in a year and has a wide reach of 9 million outlets. However, the company's EBITDA margin stood at 23.6% for FY26, down by about 70 basis points year-on-year, as reported by Business Standard. HUL's underlying sales growth (USG) has shown progressive improvement, moving from 3% to 10% across the last four reporting periods on a sequential basis. The company has raised the upper band of its EBITDA margin guidance to 22-24% from 23.5% with focus on volume-led growth. HUL's management believes that competitive intensity is likely to remain elevated in Home Care and Toilet Soaps, however, the company's initiatives in Beauty & Wellbeing and Nutrition are expected to offset this pressure. The company is shaping the portfolio structurally towards higher margins, with the wider range allowing flexibility to invest for growth.
Prabhudas Lilladher has recommended an 'Accumulate' rating on Hindustan Unilever with a target price of ₹2,320, citing the company's strategic shift and growth prospects. According to Prabhudas Lilladher's research report dated September 07, 2026, the brokerage estimates a CAGR of 9% in Sales and 8.8% in PAT over FY26-28. The company trades at 38.6x FY28 EPS which is at the lowest point in the last decade. Prabhudas Lilladher believes the risk-reward remains favorable given the 2%+ dividend yield. The brokerage's positive stance comes despite HUL shares having declined around 25% over the past year. Jefferies has retained its Buy rating on Hindustan Unilever Ltd (HUL), even as it lowered the target price from ₹2,850 to ₹2,450 per share. CLSA retained its 'Hold' rating on HUL with a price target of ₹1,804 per share, while HSBC maintained its 'Buy' rating with a price target of ₹2,440. Nomura retained its 'Buy' rating with a price target of ₹2,450, saying HUL is gearing up to 'Win in New India' with its 'SASSY' approach. Morgan Stanley retained its 'Equalweight' rating on HUL with a price target of ₹2,480. Management remains constructive on FY27 growth, with the company expecting volume-led growth to be driven by three key levers: consumption and premiumisation (40% of growth delta), market-making (40%), and new spaces (20%).
Rural expansion remains a key part of HUL's growth strategy, with the company adding more than 1.5 lakh rural outlets every year and maintaining a frontline workforce of over 40,000 employees to improve distribution and service frequency. HUL's management remains confident about its performance in FY2027, expecting growth and competitive performance to improve compared with FY2026. The company has raised the upper end of its medium-term EBITDA margin guidance to 22-24% with a range of 22-24%, while increasing its capex intensity target to 3% of sales from 2% previously. However, analysts note that no specific FY27 guidance was provided, with Nomura highlighting the absence of earlier-indicated double-digit EPS growth guidance as a notable omission. Shares of Hindustan Unilever were trading at ₹1,974, up ₹17.85 from the previous close of ₹1,956.15, with the stock hitting a high of ₹1,984 and low of ₹1,951 during the session.
