Hindustan Unilever Ltd (HUL) on Thursday reported a 6 per cent rise in consolidated turnover to Rs 16,235 crore for the December quarter of FY26, compared with Rs 15,353 crore in the year-ago period.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 3 per cent to Rs 3,788 crore from Rs 3,689 crore a year earlier. EBITDA margin declined 70 basis points to 23.3 per cent from 24 per cent in the corresponding quarter last year.
Profit after tax (PAT) before exceptional items from continuing operations stood at Rs 2,562 crore, up 1 per cent from Rs 2,543 crore in the year-ago period.
The company reported an exceptional loss of Rs 576 crore during the quarter compared with an exceptional gain of Rs 538 crore in the same period last year. Exceptional items for the quarter included Rs 498 crore on account of fair valuation of financial liabilities related to acquisitions, restructuring expenses of Rs 68 crore, acquisition and disposal-related costs of Rs 11 crore and profit of Rs 1 crore from the sale of property.
Continuing and Discontinued Operations
PAT from continuing operations declined 30 per cent to Rs 2,118 crore from Rs 3,027 crore a year ago.
PAT from discontinued operations stood at Rs 4,485 crore compared with a loss of Rs 38 crore in the corresponding quarter last year.
Reported profit after tax, including discontinued operations, rose 121 per cent to Rs 6,603 crore from Rs 2,989 crore in the year-ago period. The increase was primarily driven by a one-time positive impact arising from the demerger of the ice cream business.
Ice Cream Demerger and Accounting Impact
During the quarter, the company implemented the scheme of arrangement approved by the National Company Law Tribunal for the demerger of its ice cream business into Kwality Wall’s (India) Ltd. The scheme became effective on December 1, 2025. The difference between the fair value and carrying amount of the net assets of the ice cream undertaking was recognised as an exceptional gain of Rs 4,611 crore in the consolidated statement of profit and loss.
In line with accounting standards, the net results of the ice cream business from April 1, 2024, to November 30, 2025, have been disclosed separately as discontinued operations.
Regulatory Update and Strategic Moves
On November 21, 2025, the Government of India notified the four Labour Codes consolidating 29 existing labour laws. The change in wage definition has resulted in an increase in gratuity and compensated absences liability of Rs 113 crore as at December 31, 2025. The group said it continues to monitor developments and will account for further impact, if any.
During the quarter, HUL also announced strategic changes in its Health and Wellbeing portfolio. The board approved the acquisition of the remaining 49 per cent stake in Zywie Ventures Private Ltd (OZiva) for Rs 824 crore, making it a wholly owned subsidiary. HUL had earlier acquired a 51 per cent stake in January 2023.
The board also approved divestment of its 19.8 per cent minority stake in Nutritionalab Private Ltd to USV Private Ltd for Rs 307 crore. Both transactions are expected to close by March 2026 and have no impact on the financial results for the quarter ended December 31, 2025.
Segment Performance and Market Reaction
Segment-wise, Home Care reported 3 per cent underlying sales growth. Beauty and Wellbeing delivered 6 per cent underlying sales growth, while Personal Care grew 6 per cent. The food segment also reported 6 per cent underlying sales growth during the quarter.
HUL said it delivered 5 per cent underlying sales growth, led by 4 per cent underlying volume growth in the December quarter.
Commenting on the performance, CEO and Managing Director Priya Nair said demand trends reflected early signs of recovery during the quarter, and the company delivered competitive growth supported by volume expansion and brand investments.
Hindustan Unilever Ltd shares fell 2.93 per cent to Rs 2,390.40 after the Q3 results announcement, down Rs 72.05.
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