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HUL Q3 Profit Plunges 30% Despite Revenue Growth; CEO Outlines Strategy

Hindustan Unilever reported a 30% decline in consolidated net profit for Q3 FY26, falling to Rs 2,118 crore. While the profit after tax showed a massive 121% year-on-year jump, this was primarily driven by a one-off gain from the Ice Cream demerger, with underlying profit growth being a muted 1%. The company's turnover grew by 6% to Rs 16,235 crore, but its EBITDA margin contracted. CEO Priya Nair emphasized the company's strategy of building modern brands and leading category creation to drive future growth.

Key Points: HUL Q3 Net Profit Drops 30%, Core Growth Muted

  • Q3 net profit down 30% YoY
  • Exceptional loss of Rs 576 crore in quarter
  • Underlying PAT growth only 1%
  • Turnover rose 6% to Rs 16,235 crore
  • Outlook positive for FY27
2 min read

Hindustan Unilever's Q3 net profit drops 30 pc

Hindustan Unilever's Q3 profit fell 30% to Rs 2,118 crore. Excluding one-offs, growth was just 1% despite a 6% rise in turnover.

"Our commitment... places us in good stead to deliver sustained volume-led growth and create long-term shareholder value - Priya Nair"

New Delhi, Feb 12

FMCG bellwether Hindustan Unilever Limited on Thursday reported a 30 per cent decline in consolidated net profit to Rs 2,118 crore from continuing operations for Q3 FY26.

On year-on-year, the company's profit after tax for the period jumped to Rs 6,603 crore, up 121 per cent, according to the stock exchange filing.

The huge growth in PAT was "primarily driven by one-off positive impact arising from Ice Cream demerger accounted for in accordance with the approved scheme of demerger and applicable accounting standards," the statement said.

Excluding exceptional items, Profit After Tax (PAT) at Rs 2,562 crores only grew by 1 per cent, underscoring muted core profitability despite the stronger top line, the firm said in its regulatory filing.

Earnings before interest, taxes, depreciation and amortisation increased 3 per cent to Rs 3,788 crore, but EBITDA margin contracted 70 basis points to 23.3 per cent from 24 per cent in the year‑ago quarter.

The total turnover rose 6 per cent to Rs 16,235 crore from Rs 15,353 crore a year earlier, it added in its filing.

The company reported an exceptional loss of Rs 576 crore in the quarter, compared with an exceptional gain of Rs 538 crore in the same period last financial year.

"We continued to build desirability at scale with our brands, accelerate market development in high-growth demand spaces and strengthen our capabilities to scale Channels of the Future with a dedicated organisation for quick commerce. As market leaders in FMCG, our commitment to build modern brands, lead category creation and invest disproportionately to build future moats, places us in good stead to deliver sustained volume-led growth and create long-term shareholder value," said Priya Nair, CEO and Managing Director.

The company shared its outlook for FY27, saying macro stability coupled with supportive policy measures will foster a conducive backdrop for consumption.

It suggested investors expect FY27 to be better than FY26 led out of portfolio and channel transformation.

Hindustan Unilever had also announced the acquisition of the remaining 49 per cent stake in Zywie Ventures (OZiva) for Rs 824 crore and the planned divestment of its 19.8 per cent stake in Nutritionalab for Rs 307 crore.

- IANS

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Reader Comments

P
Priya S
Turnover up but margins down. This is the story of most FMCG companies right now. Raw material costs must be pinching. As a regular consumer, I've noticed some of their products becoming more expensive. Hope they manage costs without compromising quality. 🤞
R
Rohit P
Interesting moves with OZiva and Nutritionalab. They're clearly betting big on health and wellness, which is a booming sector in India. Smart long-term play, even if the quarterly numbers look soft. The FY27 outlook seems optimistic though.
S
Sarah B
The "exceptional loss" of 576 crores needs more explanation. What was it for? These one-off items make it so hard for retail investors like me to understand the true health of the company. Transparency could be better.
M
Meera T
HUL products are in almost every Indian home - from Surf Excel to Brooke Bond. When their core profit growth is just 1%, it says something about overall consumer spending. The economy might be growing, but are household budgets really stretching? Food for thought.
K
Karthik V
"Channels of the Future" and "quick commerce" – good to see a traditional giant adapting. Blinkit and Instamart deliveries are how many urban families shop now. If HUL can crack that supply chain efficiently, it will be a game changer.

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