HUL reports USD 306M net profit in Q3 FY26
These results highlight steady profit and sales growth despite short-term challenges from regulatory changes and weather disruptions.
INDIA – Hindustan Unilever Limited (HUL) has reported a 3.8% year-on-year increase in consolidated net profit for the second quarter ended September 30, 2025, reaching Rs 2,694 crore(USD 306.37 million), up from Rs 2,595 crore(USD 295.47 million) in the same period last year.
The company’s revenue grew by 2.1% to Rs 16,034 crore compared to Rs 15,703 crore(USD 1.79 billion) a year earlier.
This growth was driven by a 2% underlying sales growth and flat underlying volume growth, reflecting the transitional impact of GST rate changes on about 40% of its portfolio, along with prolonged monsoon effects in certain parts of India.
Total expenses for the quarter rose by 3.32% to Rs 12,999 crore(USD 1.48 billion).
HUL’s EBITDA stood at Rs 3,729 crore(USD 424.27 million), slightly down from Rs 3,793 crore(USD 431.45 million) in the previous fiscal year, resulting in a 90 basis points decline in EBITDA margin to 23.2%.
The company attributed this margin compression to cost pressures, GST rate transitions, and increased business investments.
Priya Nair, CEO and Managing Director, stated, “We delivered a competitive performance with an Underlying Sales Growth of 2% and an EBITDA margin of 23.2% in the quarter.¨
¨However, the quarter saw a transitory impact as the market adjusted to these changes. We anticipate normal trading conditions starting early November, once prices stabilize, paving the way for a gradual and sustained market recovery.¨
HUL announced an interim dividend of Rs 19(USD 0.22) per share, with the record date set for November 7, and the dividend payment scheduled for November 20, 2025.
The company foresees low single-digit price growth in categories not impacted by GST rate cuts and volume-led growth in the second half of FY26.
Analysts have noted that while the GST-led price reductions caused short-term de-stocking, margins are expected to stabilize in the 22–23% range for the rest of the year.
Several brokerage firms maintain a positive outlook, though they have slightly lowered earnings estimates, anticipating a gradual recovery.
Following the earnings announcement, HUL shares experienced some volatility but remain favored by long-term investors given the company’s strong market position.
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