Hindustan Unilever (HUL) has reported a 3.6% increase in profit for the fourth quarter, buoyed by improved sales volumes that have positively impacted the consumer goods giant. During a recent press briefing, HUL’s CEO, Rohit Jawa, expressed optimism about future demand, stating, “We expect conditions to gradually enhance moving forward.”

Recovery in FMCG Sector

The fast-moving consumer goods (FMCG) sector has faced sluggish demand in recent quarters. However, analysts predict that recovery is on the horizon. Several key factors are anticipated to contribute to this rebound:

• Easing Inflation: The effects of high inflation and expensive raw materials are starting to diminish.
• Rural Demand Boost: With another favorable monsoon season predicted, rural consumption is set to rise.
• Tax Incentives: Recent tax cuts introduced in the Union Budget are likely to stimulate consumer spending.

Positive Outlook for FY26

Looking ahead, HUL forecasts gradual growth throughout the year, driven by strategic portfolio adjustments and improved economic conditions. The company’s Chief Financial Officer, Ritesh Tiwari, highlighted that growth in the first half of FY26 is expected to surpass that of the second half of FY25. He noted, “Assuming commodity prices stabilize, we anticipate price growth to remain within the low-single-digit range.”

Additionally, HUL expects its gross margins to stabilize as it focuses on delivering a compelling price-value proposition to its customers. Tiwari indicated that the FY26 EBITDA margin is projected to remain healthy, falling within the range of 22-23%.

Performance Highlights

In the fiscal year 2025, HUL achieved a turnover exceeding ₹60,000 crore. The company reported an underlying sales growth of 2% and an earnings per share (EPS) increase of 5%. While the overall volume grew in the mid-single digits, this was somewhat tempered by a negative product mix. Rohit Jawa remarked on their competitive performance, stating, “We have further solidified our market leadership during the year.”

In conclusion, as Hindustan Unilever navigates through these evolving market dynamics, the company appears well-positioned for a promising recovery in the FMCG sector.