Hindustan Unilever WINI strategy targets volume-led growth through premiumisation and innovation

Investment View and WINI Strategy

Prabhudas Lilladher’s September 07, 2026 analyst-meet update on Hindustan Unilever retains an Accumulate rating and a target price of Rs 2,320.

The broker views HUL’s shift from WIMI, or Winning in Many India’s, to WINI, or Winning in New India, as central to restoring volume-led revenue growth. The strategy focuses on premiumisation, raising product usage, market making and entry into high-growth categories. Management cited rising incomes, greater infrastructure access, and digital and data access as structural drivers of the WINI opportunity.

Management expects the incremental growth delta to come from consumption and premiumisation, expansion of the user base through market making and new categories, and innovation:

• 40 per cent from consumption and premiumisation.
• 40 per cent from expanding the user base through market making and new categories.
• 20 per cent from innovation.

HUL plans to fund higher capex, innovation, market-making and high-growth-segment investments through sourcing savings, premiumisation, cost savings and media effectiveness. It has identified cost savings of 500 basis points over the next three to five years. Management has raised the upper end of its EBITDA-margin guidance to 24 per cent, from 23.5 per cent previously, within a 22–24 per cent range, and said the prevailing inflation environment should not affect margins.

Premiumisation and Market-Making Opportunities

The premium portfolio is expected to grow 1.5 times faster than the rest of the portfolio. HUL plans to double investment behind premium products, direct 60 per cent of advertising to digital, and develop emerging channels. Premium-segment market-share gains are running at about 1.3 times the pace of gains in mass segments.

Management highlighted underpenetrated market-making categories, while brand renovations and extensions include Dove, Vaseline, Minimalist, Kissan and Horlicks.

Segment Trends and Portfolio Initiatives

Home Care

In Home Care, Prabhudas Lilladher notes elevated competitive intensity. Powder detergents account for 63 per cent of volume and liquids only 5 per cent, leaving scope for format premiumisation as washing-machine adoption rises. Tier 3 mass powders represent 57 per cent of volumes, while premium products account for 21 per cent. Surf Excel Liquid has quarterly penetration of 13 per cent, and Vim Liquids has 7 per cent penetration.

Beauty and Wellbeing

Power-spender brands such as Oziva, Simple, Minimalist and Liquid I.V. are growing 30 times faster than democratiser brands, while premiumiser brands such as Dove, Lakme and Vaseline are growing three times faster. Minimalist has reached annual recurring revenue above Rs 900 crore and scaled three times since acquisition.

Personal Care and Foods

In Personal Care, rural growth is 1.8 times urban growth. In Foods, HUL is pursuing consumption, premiumisation and innovation, including Horlicks Superfoods and Horlicks Protein.

Financial Forecasts and Valuation

Prabhudas Lilladher estimates sales and PAT CAGR of 9 per cent and 8.8 per cent, respectively, over FY26–FY28. Its FY27E and FY28E forecasts are unchanged.

The target price is based on 45 times FY28 earnings. At the CMP, HUL trades at 38.6 times FY28E EPS, described as the lowest point in the past decade, while offering a dividend yield above 2 per cent.

Key Risks and Offsetting Factors

• Sustained competitive pressure in Home Care and Toilet Soaps.
• Near-term growth and margin pressure from higher inflation and El Nino conditions.

The broker believes initiatives in Beauty and Wellbeing and Nutrition can partly offset competitive pressures.