Hindustan Unilever Limited (HUL), India’s fast-moving consumer goods (FMCG) powerhouse, reported a massive 121% year-on-year (YoY) surge in its consolidated net profit for the third quarter ended December 31, 2025 (Q3 FY26). The company’s net profit reached ₹6,603 crore, up from ₹2,989 crore in the previous year, primarily driven by a significant one-time gain from the strategic demerger of its ice cream business.
The headline-grabbing profit spike is largely attributed to an exceptional gain of ₹4,611 crore following the demerger of the ice cream vertical (including the iconic Kwality Wall’s brand). This move allows HUL to sharpen its focus on core high-growth categories while unlocking substantial value for shareholders.
While the reported profit saw a triple-digit jump, HUL’s core operational performance reflected the broader challenges in the FMCG sector:
- Revenue Growth: Consolidated revenue from operations rose 5.6% YoY to ₹16,441 crore.
- Volume Growth: Underlying volume growth (UVG) remained steady at 4%, indicating resilient consumer demand despite inflationary pressures.
- EBITDA: Operating profit (EBITDA) grew by 3% to ₹3,788 crore, though margins compressed slightly by 70 basis points to 23.3%.
Alongside the earnings report, HUL announced a major pivot into the clean-label wellness space. The company will now fully acquire OZiva (Zywie Ventures) by buying the remaining 49% stake. Simultaneously, HUL has decided to exit Nutritionalab (Wellbeing Nutrition), signaling a more aggressive strategy to consolidate its “Beauty & Wellbeing” portfolio under brands that offer higher synergy.
The company saw varied performance across its key divisions:
- Beauty & Wellbeing: Led the pack with 11% revenue growth, fueled by premium brands like Dove and TRESemmé.
- Home Care: Delivered a stable 3% growth, reaching its highest-ever market share.
- Foods & Refreshment: Grew by 6%, with coffee maintaining strong double-digit momentum.
“Demand trends in Q3 reflected early signs of recovery,” said Priya Nair, CEO and Managing Director of HUL. “We are investing disproportionately to build future moats, particularly in ‘Channels of the Future’ like Quick Commerce.”
Key Highlights:
- Net Profit Surge: Reported PAT jumped 121% to ₹6,603 crore, boosted by a ₹4,611 crore gain from the ice cream demerger.
- Steady Revenue: Operational revenue grew 5.6% to ₹16,441 crore, supported by 4% underlying volume growth.
- Strategic Pivot: HUL is moving to 100% ownership of OZiva while exiting its joint venture in Wellbeing Nutrition to streamline its wellness portfolio.
- Market Outlook: The company reported early signs of rural demand recovery and a significant focus on scaling through quick commerce platforms.