Minimalist's Massive Growth: How HUL's Skincare Bet is Paying Off

What's the news?#

The skincare brand Minimalist, now majority-owned by Hindustan Unilever (HUL), is on a tear. In the fiscal year 2026, which just ended, the company posted a 36% growth in its top-line income, bringing it close to a Rs 700 crore run-rate. This is its first full financial year since HUL acquired a 90.5% stake for a hefty Rs 2,955 crore back in January 2025. The numbers are impressive, especially when you consider the brand also managed to post a Profit After Tax (PAT) of Rs 26 crore during the same period. What's really catching attention is that the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) more than doubled, which points to a very healthy and efficient business model.

Details#

Minimalist's journey under the HUL umbrella has been nothing short of spectacular. The brand, which is known for its science-backed, minimalist approach to skincare, has been a hit with the Indian consumer. The 45% growth it saw in FY25 was already a strong signal of its potential, but the 36% growth in FY26, despite a larger base, shows that the momentum is not just a flash in the pan. The brand has successfully expanded its product range and distribution network across the country, tapping into both metros and tier-2 and tier-3 cities. The Rs 26 crore PAT is a significant milestone, especially for a relatively young brand in a highly competitive market. The doubling of EBITDA is particularly telling, as it suggests that the company has been able to scale its operations without a corresponding increase in costs, a rare feat in the consumer goods sector.

India impact#

This success story has significant implications for the Indian beauty and personal care market. For one, it validates the shift towards skincare-focused products, moving beyond traditional fairness and fairness creams. Minimalist's success shows that Indian consumers are becoming more educated and are willing to invest in products that promise tangible results. This is a departure from the past, where the market was dominated by a few large players. The brand's ability to grow so quickly under HUL's ownership also highlights the potential of homegrown brands that have a strong digital-first presence. It's a testament to the fact that with the right backing and strategy, Indian startups can compete and win at a national scale. The Rs 2,955 crore acquisition by HUL is now looking like a masterstroke, as the brand continues to deliver impressive financial performance.

Use cases#

For the average consumer, Minimalist's growth translates into better access to quality skincare products. The brand's focus on specific skin concerns, such as acne, anti-aging, and hydration, has resonated well with the youth and working professionals. The expansion of its retail presence means that more people can now buy their products offline, not just online. For investors and other companies in the space, Minimalist's performance is a case study in how to build a successful direct-to-consumer (D2C) brand and then scale it up. The brand's strategy of using social media and influencers to build a community has been particularly effective. The success also puts pressure on other players in the market to innovate and offer better, more science-backed products.

Honest take#

While the numbers are certainly impressive, it's important to keep things in perspective. The skincare market is incredibly crowded, and maintaining this growth rate will be the real challenge. Competition is fierce, not just from other D2C brands but also from established players who are now waking up to the skincare trend. The fact that Minimalist's EBITDA more than doubled is a positive sign, but we need to see if this can be sustained in the coming years. Also, the Rs 2,955 crore acquisition price was quite high, and the market will be watching closely to see if the brand can justify this valuation in the long run. But for now, it's a win-win situation for both Minimalist and HUL. The brand has found the perfect parent to help it scale, and HUL has added a jewel to its crown. This is a story that's still unfolding, and we're definitely going to be watching it closely.

FAQs#

Q1: What is Minimalist and why is it popular?

A1: Minimalist is an Indian skincare brand known for its science-backed, minimalist approach to skincare. It focuses on specific skin concerns like acne, anti-aging, and hydration. Its popularity stems from its effective products, transparent ingredient lists, and strong digital-first marketing strategy that resonates with the youth.

Q2: How much did HUL pay for its stake in Minimalist?

A2: HUL acquired a 90.5% stake in Minimalist for Rs 2,955 crore in January 2025. This was a significant investment in a homegrown D2C brand.

Q3: What does the 36% growth in FY26 mean for Minimalist?

A3: The 36% growth in FY26 means that Minimalist's revenue increased by that amount compared to the previous year. This is a strong indicator of the brand's growing popularity and successful expansion in the market, even after a massive acquisition.

Q4: How is Minimalist different from other skincare brands?

A4: Minimalist differentiates itself by focusing on a 'less is more' philosophy, with products that have fewer but potent ingredients. It also emphasizes transparency and provides detailed information about the science behind its formulations, which appeals to a more discerning customer base.

Q5: What is the significance of the EBITDA more than doubling?

A5: A doubling of EBITDA is a very positive financial metric. It means that the company's profitability before interest, taxes, and other non-cash expenses has significantly improved. This suggests that Minimalist has been able to scale its sales without a proportional increase in its operational costs, indicating strong operational efficiency.