HUL targets 22-24% EBITDA margin, plans capex boost to 3%

Hindustan Unilever Ltd is stepping up investment in growth infrastructure, planning to increase capital expenditure from 2 per cent to 3 per cent of turnover as it pursues expansion opportunities in India's growing consumer market. The move represents a significant shift in spending strategy for the FMCG major, which has maintained capex at 2 per cent of revenue over the past five years.

The company is simultaneously targeting EBITDA margins of 22-24 per cent in the medium term, according to senior management. HUL reported an EBITDA margin of 23.6 per cent in FY26, down approximately 70 basis points year-on-year, reflecting ongoing cost pressures within the sector.

HUL, which is part of British multinational Unilever Plc, generated revenue of Rs 63,763 crore in FY26 and operates a portfolio of 21 brands each exceeding Rs 1,000 crore in annual turnover. The company distributes 85 billion packs annually across a network of 9 million retail outlets, establishing itself as a dominant player in India's consumer goods market.

The company's strategy centres on volume-led profit growth while restructuring its portfolio to align with consumption trends. The increased capex allocation is designed to enhance productivity and enable the company to capture what management describes as the "New India opportunity" driven by rising household incomes and changing consumer preferences.