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Hindustan Unilever’s profits flatten as margins take a beating

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MUMBAI:  Hindustan Unilever limped through the September quarter with anaemic growth and shrinking margins, a performance that underscores the headwinds buffeting India’s consumer-goods bellwether. The maker of Dove soap and Surf detergent eked out a mere two per cent rise in sales whilst profit after tax before exceptional items slipped four per cent.

Revenue from operations nudged up to Rs 16,034 crore for the quarter ended 30 September 2025, compared with Rs 15,703 crores in the year-ago period. But the real story lay in the margins: EBITDA margin contracted a painful 90 basis points to 23.2 per cent, down from 24.1 per cent last year. The culprit? Surging raw-material costs, which jumped 15 per cent year-on-year to Rs 5,746 crore.

Profit after tax before exceptional items came in at Rs 2,482 crore, down from Rs 2,594 crore in the September 2024 quarter. But here’s where it gets interesting: exceptional items swung the needle dramatically. A one-off Rs 273-crore windfall from resolving tax disputes between UK and Indian authorities turned what would have been a profit decline into a four per cent gain. Reported PAT stood at Rs 2,694 crore versus Rs 2,595 crore last year.

The half-year picture proved equally tepid. For the six months ended September, sales rose just four per cent to Rs 32,330 crore from Rs 31,200 crore. EBITDA for the period came in at Rs 7,539 crore with margins at 23.3 per cent. Profit after tax before exceptionals at Rs 4,960 crore marked a five per cent decline from Rs 5,201 crore in the first half of the previous year.

Segment performance revealed a mixed bag. Home Care, the company’s largest division with Rs 11,441 crore in half-year sales, saw operating profit slip to Rs 2,212 crore from Rs 2,250 crore. Beauty & Wellbeing proved the bright spot, with sales surging 10 per cent to Rs 7,363 crores, though operating profit dipped marginally to Rs 2,060 crore. Personal Care posted a robust four per cent sales growth whilst Foods, contributing Rs 7,885 crore  saw profits decline 10 per cent to Rs 1,281 crore.

The company’s acquisition spree added fresh complications. Purchase consideration for business combinations totalled Rs 2,661 crore during the half-year, primarily related to the Minimalist skincare brand acquisition completed in April. This aggressive M&A activity, whilst positioning HUL for future growth, weighed on near-term cash flows and contributed Rs 38 crore in acquisition-related costs.

Managing director and chief executive officer Priya Nair faces a delicate balancing act. The board declared an interim dividend of Rs 19 per share, maintaining shareholder payouts even as profits sputtered. Meanwhile, the proposed demerger of the ice-cream business into Kwality Wall’s (India) Limited awaits regulatory clearances—a restructuring that could reshape HUL’s portfolio but added Rs 51 crore in expenses this quarter.

Cash generation remained robust despite operational headwinds. Operating cash flows for the half-year stood at Rs 6,267 crores, though down from Rs 6,657 crore last year. The company deployed Rs 5,639 crore in dividend payments whilst splashing Rs 617 crore on capital expenditure.

Earnings per share for the quarter came in at Rs 11.43, up marginally from Rs 11.03 last year, though this flattered the underlying performance due to exceptional gains. For the half-year, EPS stood at Rs 23.16 versus Rs 22.14, a five per cent increase that masked the compression in core profitability.

The September quarter’s travails suggest India’s consumption story has lost some fizz. With costs climbing faster than pricing power allows and competition intensifying across categories, HUL’s playbook of premiumisation and market-share gains faces a stern test. The Rs 273-crore tax bonanza provided cosmetic relief this quarter, but the underlying business needs more than accounting alchemy to regain its mojo.

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Delhivery chairman Deepak Kapoor, independent director Saugata Gupta quit board

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Gurugram: Delhivery’s boardroom is being reset. Deepak Kapoor, chairman and independent director, has resigned with effect from April 1 as part of a planned board reconstitution, the logistics company said in an exchange filing. Saugata Gupta, managing director and chief executive of FMCG major Marico and an independent director on Delhivery’s board, has also stepped down.

Kapoor exits after an eight-year stint that included steering the company through its 2022 stock-market debut, a period that saw Delhivery transform from a venture-backed upstart into one of India’s most visible logistics platforms. Gupta, who joined the board in 2021, departs alongside him, marking a simultaneous clearing of two senior independent seats.

“Deepak and Saugata have been instrumental in our process of recognising the need for and enabling the reconstitution of the board of directors in line with our ambitious next phase of growth,” said Sahil Barua, managing director and chief executive, Delhivery. The statement frames the exits less as departures and more as deliberate succession, a boardroom shuffle timed to the company’s evolving scale and strategy.

The resignations arrive amid broader governance recalibration. In 2025, Delhivery appointed Emcure Pharmaceuticals whole-time director Namita Thapar, PB Fintech founder and chairman Yashish Dahiya, and IIM Bangalore faculty member Padmini Srinivasan as independent directors, signalling a tilt towards consumer, fintech and academic expertise at the board level.

Kapoor’s tenure spanned Delhivery’s most defining years, rapid network expansion, public listing and the push towards profitability in a bruising logistics market. Gupta’s presence brought FMCG and brand-scale perspective during a period when ecommerce volumes and last-mile delivery economics were being rewritten.

The twin exits, effective from the new financial year, underscore a familiar corporate rhythm: founders consolidate, veterans rotate out, and fresh voices are ushered in to script the next chapter. In India’s hyper-competitive logistics race, even the boardroom does not stand still.

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Brnd.me enters Europe as haircare brands power global expansion

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Bengaluru:  Brnd.me, the global consumer brands company formerly known as Mensa Brands, has entered the European market following strong momentum across the Middle East, the United States and Canada.

The company has launched across the UK, Germany, France and Spain, with plans to expand into Italy, the Netherlands and Poland over the next year. The push is being led by its haircare and aromatherapy brands, Botanic Hearth and Majestic Pure, marking Brnd.me’s first structured expansion into Europe.

The European beauty market represents a total addressable opportunity of over $4 billion across haircare and aromatherapy, supported by high digital adoption and demand for accessible, performance-led products.

Brnd.me’s hair care and aromatherapy business currently operates at an annual run rate of around $6 million, with Botanic Hearth and Majestic Pure delivering roughly 10 per cent month-on-month growth, driven by expansion and rising repeat demand.

To support regional growth, the company has appointed a general manager based in Germany and is evaluating investments in warehousing and local team expansion.

Early traction has been strong. Within weeks of launch, Botanic Hearth’s rosemary hair oil ranked among the top five hair oils in Germany, signalling strong consumer pull in a competitive market.

Brnd.me founder and chief executive officer Ananth Narayanan, said Europe represents the next phase of the company’s international strategy. He added that the European business is expected to scale to a $10 million annual run rate by the end of 2026, with long-term ambitions to reach $60 million over the next six years.

The company’s Europe strategy centres on digital-first distribution, repeat demand and TikTok-led discovery, alongside direct-to-consumer expansion to strengthen brand equity and margins.

The move also aligns with growing EU–India trade engagement, supporting long-term sourcing and cross-border supply chains.

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TechnoSport taps quick commerce with launch on Slikk’s 60-minute platform

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NATIONAL: TechnoSport has launched on Slikk, the ultra-fast fashion app offering 60-minute delivery, as the activewear brand accelerates its push into quick commerce to capture Gen Z and young millennial shoppers.

The debut brings more than 150 high-performance styles to Slikk’s platform, with an average selling price of Rs 450, expanding TechnoSport’s reach across over 80 pin codes.

The partnership follows strong momentum for TechnoSport across Q-commerce channels, where the brand has recorded around 60 per cent volume growth over the past six months. The company expects quick commerce to contribute nearly 20 per cent of its revenue in the coming years as hyperlocal delivery gains scale.

Slikk, which recently raised $3.2 million in seed funding led by Lightspeed, has rapidly gained popularity among youth consumers seeking speed, trend relevance and impulse-led shopping experiences.

Activewear remains one of Slikk’s fastest-growing categories, driven by shoppers increasingly treating fitness-led fashion as an everyday essential. The platform has reported a 30-fold year-on-year increase in items sold, reflecting rising demand for performance wear that blends comfort with style.

TechnoSport chief executive officer Puspen Maity, said the collaboration would help the brand engage more closely with young consumers whose fashion choices are shaped by instant needs and lifestyle aspirations. He added that rapid delivery bridges the gap between intent and purchase, allowing shoppers to access activewear exactly when they want it.

 

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