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Shares of FMCG bellwether Hindustan Unilever slipped 2.5% to Rs 2,351.40 on Friday after it reported a 30% decline in consolidated net profit from continuing operations for the third quarter of FY26, to Rs 2,188 crore. In the same quarter last year, the company’s net profit was Rs 3,027 crore.The company’s net profit for the period, however, came in at Rs. 6,603 crore, up 121% year on year, primarily driven by one off impacts from its portfolio transformation actions, HUL said.The company’s revenue from continuing operations came in at Rs. 16,441 crore, marking a 5.6% year on year jump from Rs. 15,556 crore reported in the corresponding quarter of the previous financial year, HUL said in a regulatory filing.Earnings before interest, tax, depreciation and amortisation for continuing operations stood at Rs. 3,788 crore, higher by 3% from the same quarter last year. However, the EBITDA margin declined by 70 basis points YoY to 23.3%. One basis point is equal to 0.01% one hundredth of one percent.For the quarter under review, HUL reported underlying sales growth of 5%, supported by underlying volume growth of 4%. Also read: Risk-on trade back? Smallcap stocks rally up to 28% in 2026, but market breadth stays weakOutlookThe company expects macro stability along with supportive policy measures to create a favourable environment for consumption going ahead. It anticipates FY27 to be stronger than FY26, driven by continued portfolio optimisation and channel transformation initiatives.Priya Nair, CEO and Managing Director, said that demand trends reflected early signs of recovery, underpinned by supportive policy measures. “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.”Following the earnings release, HUL shares traded 3% lower to Rs. 2,396 apiece.Sensex, Nifty today: Catch all the LIVE stock market action here (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

ET Intelligence Group: HUL's year-on-year sales volume growth recovered to a multi-quarter high of 4% in the December quarter after staying flat in the prior quarter, reflecting traction across major business segments. However, it reported 70 basis point contraction in operating margin before depreciation and amortisation (Ebitda margin) at 23.3% driven by labour code related charges; the margin still remained above the company's guidance band of 22-23% indicating lack of any stress from operating costs such as raw material prices and inventory management. The FMCG major expects second half of the current fiscal year ending in March 2026 to be better than the first half and to report even better numbers next year. Its optimism is driven by progress in portfolio and channel transformation, and better macroeconomic scenario including improved consumer sentiments and better consumption demand in rural regions and improving urban traction.128281858 The company's shares fell 2% on Thursday after it reported a 30% YoY decline in net profit for the December quarter, largely on account of a one-off impact from labour code provisions. Excluding this and one-time gain from sales of the ice cream division, net profit grew by a modest 1%. HUL's inorganic growth strategy to expand in new consumer segments is paying off. The acquisition of Minimalist in January last year has helped the company to gain traction in the premium skincare space. The brand has grown faster under HUL. Its sales are not disclosed separately but is included in the beauty & wellbeing division. This division's revenue grew fastest among all categories, rising 11% year-on-year and 5.3% sequentially. This segment's share in total revenue has gradually increased to 24.2% in the December 2025 quarter from 20.8% in March 2025. HUL's decision to buy the remaining 49% stake in Zywie Ventures (Oziva), appears to be a part of the same strategy to drive long-term growth.