According to Bloomberg estimates, Hindustan Unilever may report a 3.35% increase in net profit and 9.47% higher revenue in the second quarter of FY27. As reported by Bloomberg, 12 analysts estimate revenue at ₹17,582.4 crore in the July-September period compared with ₹16,061 crore a year earlier. Nine analysts peg net profit at ₹2,784.4 crore in Q2 compared with ₹2,694 crore year earlier. The company is scheduled to announce its Q2 earnings on Wednesday.
The company faces significant margin pressure from escalating raw material costs. According to Bloomberg estimates, Brent crude oil prices were up 40% from a year ago in Q2 of FY27, increasing costs of raw materials such as linear alkyl benzene (LAB) used in Surf Excel detergents and plastic packaging. As reported by Nomura in a 28 September report, higher LAB and crude prices could put pressure on margins, though a 5% price hike implemented in Q1 should help cushion the impact. Palm oil prices had risen about 21% year-on-year in the period, though the government cut basic customs duty on crude palm oil from 10% to 5% on 24 September, potentially providing relief.
Volume growth momentum appears to be moderating despite price increases. According to Bloomberg estimates, volumes grew 5% in the April-June quarter, a dip from the Q4 FY26 growth of 6%, which was a 15-quarter high. As reported by Motilal Oswal in an 8 October report, with mid-to-high single-digit price hikes across categories, pricing has largely negated GST-2.0 benefits. The underlying volume growth in Q2 of FY26 remained unchanged, reflecting subdued consumer offtake after widespread monsoon disruptions and ahead of goods and services tax rate transitions that came into effect on 22 September 2026.
The broader economic environment presents challenges for consumer demand. According to Bloomberg estimates, India's retail inflation was at 5.54% in September, a 22-month high, compared with 4.83% in August. The Reserve Bank of India raised its benchmark repo rate by 25 basis points to 5.50% on 7 October, marking its first interest rate hike since February 2023. Rural demand remains a key focus area, with HUL noting in July that rural growth had accelerated in recent quarters. However, India's southwest monsoon ended 13% below the long-period average amid concerns over El Niño's warming effects, with Maharashtra, Karnataka, Andhra Pradesh, Telangana and Rajasthan declaring drought-like conditions in hundreds of talukas.
