Hindustan Unilever Forecasts Brighter Future Amid Commodity Challenges

Hindustan Unilever anticipates an improved first half of FY26 compared to the latter half of FY25, despite ongoing commodity inflation impacting margins. The company expects single-digit price growth and is investing in new platforms and strategic capabilities. Rural and urban demands show positive signs for future growth.

In a recent statement, CFO Ritesh Tiwari of FMCG giant Hindustan Unilever (HUL) projected a positive outlook for the first half of fiscal year 2026, surpassing the performance of the latter half of FY25. This optimism comes even as the company faces ongoing challenges with commodity inflation, which is expected to moderate gross margins further.

Tiwari disclosed that the company plans to intensify its investments in innovative platforms and future strategic capabilities. Despite these challenges, HUL anticipates low single-digit price growth and sees a positive trajectory in both rural and urban demand, attributed largely to government tax cuts and moderating food inflation.

Rural demand, buoyed by favorable kharif outcomes and promising rabi sowing data, alongside sustained government investments, is set for gradual recovery. Urban demand, though moderated, is expected to benefit from increased disposable incomes aided by lower commodity costs. With around one-third of its FY25 Rs 62,175 crore sales derived from rural markets, HUL underscores the critical role of rural consumption in driving overall FMCG growth.

(With inputs from agencies.)