Hindustan Unilever (HINDUNILVR) Q3 25/26 earnings summary

Executive summary

• Underlying sales grew 5% with 4% volume growth, and consolidated sales from continuing operations rose 6% year-over-year to Rs. 16,235 crore for the quarter ended 31 December 2025.

• EBITDA increased 3% year-over-year to Rs. 3,788 crore, with a margin of 23.3%, down 70 bps year-over-year.

• Reported PAT surged 121% year-over-year to Rs. 6,603 crore, primarily due to one-off gains from the ice cream business demerger and portfolio transformation.

• Strategic focus on volume-led growth, premiumization, and expansion in quick commerce and modern trade channels.

• All segments contributed to growth, with premium brands and D2C channels outperforming.

Financial highlights

• Revenue grew 6% year-over-year to Rs. 16,235 crore, with gross margin at 50.8%, up 30 bps.

• EBITDA margin at 23.3%, excluding ice cream, remained within guidance but was down 70 bps year-over-year.

• PAT before exceptional items was Rs. 2,562 crore, up 1% year-over-year; adjusted for gratuity impact, PAT would have grown 4%.

• Exceptional items included a Rs. 4,611 crore gain from the ice cream business demerger.

• Absolute ANP spend increased, but as a percentage of turnover, it was down 30 bps year-over-year.

Outlook and guidance

• FY27 is expected to outperform FY26, with growth as the top priority and continued investment to support volume-led expansion.

• Consolidated EBITDA margin expected to stay within the guided range (22.5%-23.5% post ice cream demerger).

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

• Macro stability and supportive policy measures, including GST 2.0 and repo rate cuts, are expected to foster consumption growth.

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