Hindustan Unilever sees modest sales growth, mixed profit in Q3

Hindustan Unilever Limited (HUL) reported a 2% Underlying Sales Growth (USG) for the September 2025 quarter, primarily price-led in Skin Cleansing, Beverages, and Skin Care. Turnover reached Rs 16,061 crores.

EBITDA stood at 23.2%, a 90 basis points year-on-year decline, reflecting strategic investments. Profit After Tax (PAT) before exceptional items declined 4%, while reported PAT grew by 4% due to a one-off positive impact from resolving prior years' tax matters.

For the first half of fiscal year 2026, HUL delivered 3% USG, translating to 4% turnover growth. EBITDA margin for the half-year was 23%, down 110 basis points year-on-year, in line with previous guidance. The company anticipates normal trading conditions by early November following GST-related disruptions, with second-half growth expected to outperform the first half.

GST rate reforms, benefiting 40% of HUL's portfolio, led to temporary trade disruptions but are expected to boost consumption in the long term. The board declared an interim dividend of Rs 19 per share for the year ending March 31, 2026. The Ice Cream business demerger is expected to complete by December, adding 50-60 bps to the reported EBITDA margin.