Archive · 10 Sep 2026
HUL Bets on Premium Products as FMCG Demand Remains Resilient
Hindustan Unilever Limited, or HUL, is trying to grow by selling more premium products.
These include liquid detergents, premium beauty products, body washes and whitening oral-care products.
The company also wants to save more money through its Growth and Savings programme.
HUL expects its profit margin to be between 22 and 24 percent over the medium term.
Even though prices are rising, people are still buying fast-moving consumer goods.
Rural demand remains strong, and urban demand is beginning to improve.
Paint companies also expect a healthy year because of premium products, pricing and festive demand.
ITC Infotech may merge with Happiest Minds Technologies, which could make its value easier to assess.
Hindustan Unilever Limited is emphasizing premium products, consumer segmentation, specialized distribution and digital-first marketing.
HUL raised targeted Growth and Savings programme savings to 3 percent of turnover from 2 percent.
The company revised medium-term EBITDA margin guidance to 22–24 percent, balancing investment-led growth with productivity improvements.
FMCG value growth improved to 6.8 percent in Q1FY27, while volume growth remained around 4.5–5 percent.
Paint companies retained a positive FY27 outlook, while ITC Infotech’s proposed merger with Happiest Minds could enable reverse listing.
- Who
- Hindustan Unilever Limited, paint manufacturers, ITC Infotech and Happiest Minds Technologies are the main companies discussed.
- What
- Companies are pursuing premiumisation, savings, productivity improvements and potential corporate restructuring as FMCG demand remains resilient.
- When
- The report discusses Q1FY27 performance and expectations for FY27, with forecasts covering FY26–FY28.
- Where
- The developments concern India’s FMCG, paint and technology markets; the report is datelined Mumbai.
- Why
- Companies are responding to inflation and rising raw-material costs while seeking growth, stronger margins and portfolio value.
- HUL growth focus
- Premium products, consumer segmentation, specialized distribution and digital-first marketing
- HUL savings target
- 3 percent of turnover, increased from 2 percent
- HUL EBITDA margin guidance
- 22–24 percent for the medium term
- FMCG value growth
- 6.8 percent sequentially during Q1FY27
- FMCG volume growth
- Approximately 4.5–5 percent during Q1FY27
- ITC Infotech transaction
- Proposed merger with Happiest Minds Technologies could facilitate reverse listing
- Anand Rathi forecast
- Its 16-company coverage universe is expected to deliver about 10 percent revenue CAGR and 15 percent earnings CAGR over FY26–FY28