Hindustan Unilever Reports Q3 Results
Hindustan Unilever Limited (HUL) reported revenue of ₹16,235 crore and a net profit of ₹6,603 crore for the third quarter of fiscal year 2026. The FMCG major posted an EBITDA margin of 23.3%. The results provide a benchmark for the Indian consumer goods market, highlighting the performance of premium brands amid ongoing competition.
- The 121% jump in net profit was driven by a one-time exceptional gain of roughly ₹4,611 crore from demerging its ice cream business into a new entity, Kwality Wall's (India) Ltd. - Excluding the one-time gain, the core profit from continuing operations declined by 30% to ₹2,118 crore, compared to ₹3,027 crore in the same quarter of the previous year. - The company saw a 4% underlying volume growth (UVG), a key indicator of consumer demand, which suggests more products were sold compared to the previous year. - The Beauty & Wellbeing segment was the top performer with 11% growth, led by premium brands like Dove and TRESemmé. In contrast, Home Care grew 3% and Personal Care grew by a modest 1%. - Despite higher revenue, the EBITDA margin contracted by 70 basis points from the previous year, indicating rising cost pressures. - Management commentary pointed to early signs of a demand recovery, with rural demand continuing to grow faster than in urban areas, a persistent trend in the broader FMCG market. - HUL is building capabilities for "channels of the future" by creating a dedicated quick commerce organization, which already accounts for 3% of its business and is growing rapidly. - The company increased its advertising and promotion spending by 2.4% year-over-year to ₹1,522 crore for the quarter.
