NEW DELHI — Hindustan Unilever Limited on Thursday reported a 30 percent decline in consolidated net profit from continuing operations for the third quarter of FY26, reflecting muted core profitability despite higher revenue.
The FMCG major posted a net profit of Rs 2,118 crore for the quarter, compared with the year-ago period. On a year-on-year basis, however, profit after tax surged to Rs 6,603 crore, up 121 percent, largely due to a one-time accounting gain linked to the demerger of its ice cream business.
The company said the sharp increase in reported profit was primarily driven by a one-off positive impact arising from the ice cream demerger, accounted for in line with the approved scheme and applicable accounting standards.
Excluding exceptional items, profit after tax stood at Rs 2,562 crore, representing growth of just 1 percent, highlighting continued pressure on underlying profitability. Earnings before interest, taxes, depreciation and amortisation rose 3 percent to Rs 3,788 crore, while EBITDA margin contracted by 70 basis points to 23.3 percent from 24 percent a year earlier.
Total turnover increased 6 percent to Rs 16,235 crore, compared with Rs 15,353 crore in the corresponding quarter last year, according to the company’s regulatory filing.
Hindustan Unilever reported an exceptional loss of Rs 576 crore during the quarter, compared with an exceptional gain of Rs 538 crore in the same period of the previous 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,” said Priya Nair, Chief Executive Officer and Managing Director. “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.”
Looking ahead, the company said macroeconomic stability and supportive policy measures are expected to provide a favorable backdrop for consumption. It added that FY27 is likely to be better than FY26, driven by portfolio reshaping and channel transformation.
During the quarter, Hindustan Unilever also announced the acquisition of the remaining 49 percent stake in Zywie Ventures, which operates the OZiva brand, for Rs 824 crore, along with plans to divest its 19.8 percent stake in Nutritionalab for Rs 307 crore. (Source: IANS)
