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HUL reported 4% growth in net profit to INR 2790 crore, with volume growth at 7%
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Business Standard
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HUL reported 4% growth in net profit to INR 2790 crore, with volume growth at 7%

Hindustan Unilever (HUL) demonstrated a 4% growth in consolidated net profit attributable to shareholders for the quarter from July to September of FY27. This growth occurred despite a one-time tax income of INR 273 crore received from exceptional items in the base period.

The company's recorded volume growth in Q2FY27 reached 7%. In its results report, the company stated that it achieved 15% sales volume growth in the September quarter, which is the highest figure in the last 14 quarters. Revenue for this period amounted to INR 18,071 crore. The strong volume growth of 7% reflects a sustained momentum supported by a focus on creating sought-after brands and strengthening future-adapted distribution channels. Furthermore, it was noted that the Indian economy remains resilient, and healthy macroeconomic indicators contribute to a positive consumption environment.

Net profit attributable to shareholders was INR 2,790 crore for the quarter ending in September. Total revenue increased by 14.5% in this quarter, reaching INR 18,226 crore. HUL's CEO and Managing Director, Priya Nair, emphasized that the company continues to invest in developing long-term opportunities and adheres to the 'Win in New India' strategy aimed at achieving competitive, volume-based profit growth.

The company also reported that the EBITDA margin remained at 22.6%, consistent with the targeted range. The home care category saw a 22% growth, driven by double-digit volume growth across various formats. HUL noted that targeted market development and adjusted pricing actions helped increase penetration and sustain volumes. Premium powder segmentation scaled particularly well through the 99-size Surf Excel Easy Wash packaging.

In the beauty and wellness segment, a 16% volume sales growth was recorded, as premium skincare and haircare products continued to perform strongly. This segment also showed double-digit volume growth. Regarding the personal hygiene segment, which includes products like Dove and Pears, it reported a 9% volume sales growth. The food products segment also showed a 9% volume sales growth during the quarter.

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IOB's profit grew by 56% to 1963 crore rupees in the second quarter due to improved asset quality
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business-standard.com

IOB's profit grew by 56% to 1963 crore rupees in the second quarter due to improved asset quality

Indian Overseas Bank (IOB), based in Chennai, reported a 56% increase in net profit during the second quarter of the fiscal year 27, reaching 1963 crore rupees. This growth compared to 1259 crore rupees in the quarter from July to September of fiscal year 26, and is attributed to increased interest income and improved asset quality.

The bank's total income for the reporting period increased by 13%, amounting to 10,428 crore rupees. IOB's interest income in Q2 FY27 rose by 17% to 9,201 crore rupees, compared to 7,851 crore rupees in the same period last year.

Ajay Kumar Srivastava, Managing Director and CEO of IOB, noted that net interest income grew by 26% during the quarter. He also highlighted the good asset quality and low write-off levels in the system.

Net Interest Income (NII) for the quarter increased by 26.4% to 3,867 crore rupees, compared to 3,059.3 crore rupees a year earlier. Srivastava added that write-offs remained under control at 240 crore rupees, and the provisioning ratio was only 0.07%, which is one of the lowest in the banking system, and the bank consistently maintains this figure.

The Non-Performing Asset (NPA) ratio decreased by 64 basis points (bps) year-on-year (Y-o-Y) to 1.19%, while the Net NPA ratio fell by 12 bps year-on-year to 0.16%. Credit costs also decreased by 1 bp year-on-year to 0.17%. During the quarter, 647 crore rupees were recovered against NPAs, which is 2.95 times higher than quarterly write-offs. The Capital to Risk-Weighted Assets Ratio (CRAR) increased by 66 bps year-on-year to 18.60%. Return on Assets (RoA) improved to 1.53% from 1.20% last year, which is 33 bps higher. Return on Equity (RoE) grew to 24.58% from 19.95% last year, an increase of 463 bps.

The bank's total deposits increased by 20.16% to 4.07 trillion rupees from 3.39 trillion rupees. Current Account Savings Account (CASA) deposits also grew by 20.73% year-on-year to 1.65 trillion rupees, and the internal CASA ratio improved by 13 bps year-on-year to 41.14%. The volume of loans disbursed in Q2 FY27 reached 3.45 trillion rupees, showing a growth of 24.35% compared to 2.77 trillion rupees last year.

Srivastava stated that, according to preliminary estimates, IOB will require additional provisioning of about 2,600–2,800 crore rupees under Expected Credit Losses (ECL). He clarified that the bank has already created ECL provisions of about 2,700 crore rupees, meaning that 100% of the required amount is already secured in the balance sheet as projected ECL reserves.

Furthermore, he mentioned the successful performance of the gold loan portfolio and the development of several programs to meet the needs of various segments of society with competitive interest rates. Srivastava added that the jewelry loan portfolio is very sound, with outstanding loans amounting to nearly 1.36 trillion rupees, and shows no signs of stress. The bank maintains a Loan-to-Value (LTV) ratio of about 60–62%, which adequately accounts for price fluctuations.

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