HUL Q3FY26 Preview: Muted growth, flat margins; PAT likely to decline after ice cream business demerger

Hindustan Unilever Q3FY26 Results Preview: Hindustan Unilever Ltd (HUL) is set to announce its December quarter (Q3FY26) results on Thursday. According to Zee Business Research team, the company is expected to post mixed results with subdued topline growth, largely flat operating performance and a year-on-year decline in net profit.

Marginal revenue growth expected

Revenue is estimated at Rs 15,932 crore, compared with Rs 15,818 crore in the year-ago quarter, translating into a 0.7 per cent year-on-year increase on consolidated basis. The growth is likely to remain modest amidst still-gradual demand recovery and limited pricing action.

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EBITDA likely to be seen flat, margins to soften

EBITDA is expected to come in at Rs 3,700 crore, almost unchanged from Rs 3,695 crore in Q3FY25. EBITDA margin is seen slipping to 23.2 per cent from 23.4 per cent, reflecting mild input cost pressure and restrained pricing growth.

Profitability: PAT seen lower on a high base

At the bottom line, PAT is expected to decline 14.8 per cent year-on-year to Rs 2,543 crore, versus Rs 2,984 crore in the corresponding quarter last year. Analysts note that the reported base could change due to the ice cream business demerger, and any fair value gains from the demerger may partly cushion the decline in reported profit.

Volumes and pricing: Gradual recovery continues

Domestic volume growth for the quarter is estimated at around 3 per cent, indicating a slow but steady pickup in demand. Pricing growth is likely to remain in the range of 1–3 per cent, helped by selective price hikes across categories.

GST transition impact weighs on Q3

The company is expected to highlight the impact of GST transition-related issues, which affected trade flows and dispatches during October and November, weighing on near-term growth.

Segment outlook: Personal Care to outperform

Segment-wise, Home Care revenue is expected to grow around 3 per cent, while Personal Care could see stronger growth of about 8 per cent, driven by brand traction and a favourable product mix.

What to watch going ahead

While volume trends are showing early signs of improvement, earnings growth is likely to remain under pressure in the near term. Management commentary on rural demand recovery, margin trajectory and the impact of the ice cream demerger will be key triggers for the stock.