HUL Net Profit Soars 136% in Q3, Boosted by ₹4,611 Cr Kwality Wall’s Demerger Gain

FMCG giant Hindustan Unilever Ltd (HUL) on Thursday reported a 136% year-on-year jump in its net profit for the third quarter of FY26 to ₹7,075 crore, driven by a one-time gain from the demerger of its ice cream business into Kwality Wall’s (India) Ltd (KWIL).

The demerger took effect from December 1. As part of the process, the ice cream business was transferred to KWIL and treated as a discontinued operation in HUL’s books.

When HUL transferred the ice cream business, it recorded it at fair value. The fair value was higher than the carrying (book) value of the net assets. The difference of ₹4,611 crore was recognised as a one-time exceptional gain in its standalone profit and loss account. This gain is an accounting adjustment arising from the demerger and does not represent fresh cash received by the company.

Profit After Tax (PAT) before exceptional items from continuing operations stood at ₹2,570 crore, a marginal 1% increase from ₹2,555 crore a year ago. During the quarter, exceptional items also included ₹34 crore related to fair valuation of financial liabilities from acquisitions, ₹68 crore towards restructuring expenses, ₹11 crore in acquisition and disposal-related costs, and a ₹1 crore profit from the sale of property. In the same quarter last year, there was a significant gain from the Pureit sale.

Overall, PAT from continuing operations stood at ₹2,590 crore, compared to ₹3,039 crore in the year-ago quarter, reflecting a 15% decline.

HUL reported total sales from continuing operations of ₹15,614 crore for the December quarter, marking 4% growth compared to the same quarter last year. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at ₹3,640 crore, up 2% from ₹3,564 crore in the previous year’s quarter. However, the EBITDA margin declined by 50 basis points to 23.3%.

“During the quarter, demand trends reflected early signs of recovery, underpinned by supportive policy measures. Against this backdrop, we delivered a competitive performance, with 6% revenue growth and 4% underlying volume growth,” said Priya Nair, CEO and Managing Director. She added that HUL continued to build desirability at scale with its brands, accelerate market development in high-growth demand spaces, and strengthen its capabilities to scale Channels of the Future with a dedicated organisation for quick commerce.

“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,” she added.

Following the results, HUL share prices declined 3.55% to ₹2,375.00 on the BSE at 11:36 am.

Segment-wise Performance

Home Care reported 3% underlying sales growth (USG), with mid-single-digit underlying volume growth (UVG). Pricing cuts during the year continued to weigh on the category. Fabric Wash saw mid-single-digit volume growth, while the liquids portfolio delivered double-digit growth. Household Care maintained strong double-digit momentum, led by Vim Liquid. The company also pushed premiumisation, focusing on the ₹99 Surf Excel Easy Wash pack to drive penetration and upgrades.

Beauty & Wellbeing grew 6% in USG, supported by double-digit volume growth in Hair Care, driven by premium brands such as Dove and TRESemmé. Skin Care and Colour Cosmetics performed well in winter products, though non-winter products remained subdued. Health & Wellbeing posted high double-digit growth. The quarter saw launches such as TRESemmé Hydra Matrix and portfolio expansion by Minimalist with science-backed skincare products.

Personal Care rose 6%, led by double-digit growth in premium Skin Cleansing brands such as Pears and Dove. The bodywash segment strengthened its leadership position. Oral Care also delivered double-digit growth, driven by Closeup, supported by the launch of Closeup Intense Cool.

Foods recorded 6% USG, with high-single-digit volume growth across categories. Tea volumes grew moderately, though revenue was impacted by price cuts. Coffee maintained double-digit growth. Lifestyle Nutrition, including Boost and Horlicks, grew strongly. Packaged Foods saw broad-based growth across ketchup, mayonnaise, soups and Unilever Food Solutions. New launches included Kissan’s Great Indian Chutneys, Horlicks Superfoods and a zero-added-sugar variant.

On Thursday, HUL’s board also approved the purchase of the remaining 49% stake in Zywie for ₹824 crore. “Consequent to the above acquisition of balance shareholding in Zywie, Zywie (and its wholly owned subsidiary Zenherb Labs Private Limited) shall become wholly owned subsidiaries of the Company,” the company said. Additionally, it approved the sale of the company’s entire 19.8% shareholding in Nutritionalab.

The company expects macroeconomic stability and supportive policy measures to create a favourable environment for consumption. It anticipates FY27 to perform better than FY26, supported by portfolio reshaping and channel transformation. The focus remains on driving competitive, volume-led revenue growth anchored around four key priorities. On margins, the company expects them to remain within the current guided range.