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HUL Ad Spends Reach Rs 1,657 Crore as Q1 Sales Grow 10%

Ad Tribe! Bureau2 min read
Illustration of a shopping basket of household products marking HUL's Q1 FY27 results

Hindustan Unilever reported 10% underlying sales growth for the quarter ended 30 June 2026, driven equally by volume and pricing, with advertising and promotional expenditure rising 3.6% year on year to Rs 1,657 crore. Chief executive Priya Nair described it as the company's highest growth in thirteen quarters.

  • Advertising and promotional spend: Rs 1,657 crore, up 3.6% year on year
  • Underlying sales growth: 10%, split equally between volume and price
  • Underlying volume growth: 5%
  • Revenue from operations: Rs 17,149 crore, up 10.2%
  • Company turnover: Rs 17,184 crore
  • Home Care: Rs 6,554 crore, 14% growth, its highest in three years
  • Beauty and Wellbeing: Rs 4,083 crore, 12% growth
  • Foods: Rs 3,480 crore, 7% growth
  • Personal Care: Rs 2,624 crore, 4% growth

Marketing Grew Slower Than the Business

The number worth sitting with is the gap between the two growth rates. Sales rose 10%, advertising and promotion rose 3.6%.

For the country's largest advertiser, that gap matters well beyond HUL's own results. A&P spend at this scale sets the floor for television, print and digital inventory pricing across the market, and a quarter in which the biggest buyer grows its media investment at roughly a third of the rate its sales are growing is a quarter in which advertising is getting cheaper in real terms relative to the business it supports.

It also suggests the growth is not being bought. Pricing contributed half of the underlying sales growth, and volume the other half, without a proportionate increase in marketing spend behind it.

Where the Growth Came From

Home Care remained the largest business at Rs 6,554 crore and posted 14% growth, its strongest in three years, led by Fabric Wash and Household Care. Beauty and Wellbeing grew 12% on Premium Skin Care and Hair Care, Foods grew 7% on Lifestyle Nutrition and Coffee, and Personal Care grew 4%, led by premium soap bars and bodywash.

The pattern across all four is premiumisation. Premium skin care, premium soap bars, lifestyle nutrition and coffee are the named drivers, which is consistent with pricing contributing half the growth.

Nair framed the quarter against the wider environment, saying that despite global geopolitical volatility the Indian economy demonstrated resilience, supported by proactive fiscal and monetary policy measures.

On the business itself, she said the performance reflects the strength of the company's brands, the increasing competitiveness of its portfolio and disciplined execution of its strategic priorities, adding that as investments in market development, channel expansion and portfolio transformation continue to scale, the company is building a stronger, future-fit business.

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