HUL Aims 22–24% EBITDA Margin in Medium Term; To Hike Capex to 3%: Priya Nair

New Delhi: Leading FMCG company Hindustan Unilever is targeting a 22-24 per cent EBITDA margin in the medium term and stepping up capital expenditure to 3 per cent of its turnover to chase growth.

The FMCG major plans to increase capital expenditure (capex) to “enable growth and productivity” from 2 per cent, the level it maintained over the last five years, to 3 per cent, as it looks to capture the “New India opportunity” with consumption growth.

Hindustan Unilever Ltd (HUL), part of Unilever Plc, the British multinational consumer packaged goods company, registered a revenue of Rs 63,763 crore in FY26 and has 21 brands in its portfolio, each with turnover of more than Rs 1,000 crore. It sells 85 billion packs in a year and has a wide reach of 9 million outlets.

The company, which is focusing on cost management, has an EBITDA margin of 23.6 per cent for FY26, down by about 70 basis points year-on-year.

HUL, which aspires to “volume-led profit growth”, is “shaping the portfolio structurally towards higher margins”, as “wider range allows flexibility to invest for growth”, according to a presentation by its Managing Director and CEO Priya Nair for institutional investors and financial analysts.

It will unlock an incremental 500 basis points, 5 per cent of its total revenue, through a richer premium mix, operating leverage, a new multi-year cost-savings programme and AI-led media effectiveness, to deploy into its priority growth areas such as premiumisation and market development.

The company is “shaping the portfolio structurally towards higher margins”, said Nair, adding that the “wider range allows flexibility to invest for growth”.

HUL, which owns popular brands such as Surf Excel, Dove, Horlicks, Lifebuoy, Lakmé, and Brooke Bond, will invest 20 per cent of incremental turnover (delta) in new spaces as part of its portfolio reshaping strategy, Nair said in a presentation at Capital Markets Day 2026.

It will continue to pivot the portfolio towards “high growth spaces” by extending existing brands, introducing new “brands from Unilever”, the parent entity, and pursuing “Bolton acquisitions”, which will help it enter new spaces.

Nair also mentioned that HUL’s “growth has been muted in the last two years amidst a challenging operating environment”.

It has taken “decisive actions” in the last year, which are resetting HUL for stronger growth, she added.

Nair said HUL’s underlying sales growth (USG) has shown a progressive step-up over recent quarters, moving from 3 per cent to 10 per cent across the last four reporting periods on a sequential basis. It has “continued to strengthen competitiveness”, she said.

As part of its strategy, HUL has acquired Minimalist and OZiva to scale its “Beauty & Wellbeing” portfolio. Besides, it has also sold off Pureit, demerged its Ice Cream business and divested Nutritionalab as it sharpens its focus on fewer, bigger bets.

Discussing “the New India Opportunity”, she said India’s consumption story is just getting started, noting the country has climbed from the world’s 10th largest economy in 2014 to sixth in 2026 and is projected to be third by 2030, while the number of households is set to rise from 293 million in 2018 to 386 million by 2030.

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