Hindustan Unilever (HINDUNILVR) Q3 25/26 earnings summary

Executive summary

• Underlying sales grew 5% and underlying volume grew 4% year-over-year, with consolidated sales from continuing operations reaching ₹16,235 crore for the quarter ended 31 December 2025, marking the highest UVG in 12 quarters and broad-based gains across all categories.

• Reported profit after tax surged 121% year-over-year to ₹6,603 crore, primarily due to one-off impacts from the ice cream business demerger and portfolio transformation.

• Strategic focus remains on competitive, volume-led revenue growth, portfolio premiumization, radical segmentation, and channel expansion, especially in quick commerce and D2C.

• Organizational changes implemented to enhance agility, with business unit heads now reporting directly to the CEO and a new India-focused R&D structure.

Financial highlights

• Revenue grew 6% year-over-year to ₹16,235 crore, with gross margin at 50.8%, up 30 bps, reflecting a positive portfolio mix.

• EBITDA stood at ₹3,788 crore, up 3% year-over-year, with EBITDA margin at 23.3% (excluding ice cream), down 70 bps year-over-year.

• PAT before exceptional items grew 1% to ₹2,562 crore; adjusted for gratuity impact, EBITDA and PAT BEI would have grown 5% and 4%, respectively.

• Exceptional items included a ₹4,611 crore gain from the ice cream business demerger and a loss of ₹576 crore, compared to a gain of ₹538 crore in the prior year.

• Absolute ANP investment increased by ₹185 crore year-over-year, maintaining competitiveness in share of voice and market.

Outlook and guidance

• Growth in FY27 expected to surpass FY26, with the second half of FY26 better than the first half.

• Consolidated EBITDA margin expected to remain within the guided range (now 22.5%-23.5% post ice cream demerger), with continued investment for sustained growth.

• Low single-digit price increases anticipated over the year due to stable-to-inflationary commodity trends.

• The company continues to monitor regulatory changes, including new labour codes, and will adjust financial reporting as needed.