HUL Shares Decline Over 4% After Q3FY26 Result - Here's Why

FMCG Stock: The shares of India's largest FMCG company Hindustan Unilever Ltd (HUL) declined as much as 4.57% to hit an intra-day low of Rs 2,350.10 apiece on Thursday, February 12, after the company reported a 30% fall in consolidated net profit (from continuing business) to Rs 2,118 crore for the December quarter, down from Rs 3,027 crore year-on-year (YoY).

The company also reported Profit After Tax (PAT) at Rs 6,603 crore, signalling 121% YoY growth, primarily driven by one-off positive impact arising from "Ice Cream demerger accounted for in accordance with the approved scheme of demerger and applicable accounting standards."

In the corresponding October-December quarter of the previous year, the company had recorded a net profit of Rs 2,989 crore, as indicated in a regulatory filing from HUL. Its profit before exceptional items and tax stood at Rs 3,495 crore

In the quarter ending December, the company's product sales revenue increased by 5.71%, reaching Rs 16,197 crore, compared to Rs 15,322 crore during the same quarter last year.

Priya Nair, MD and CEO at HUL, said, “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. 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."

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However, HUL also recorded an exceptional item (loss) of Rs 576 crore this quarter as a result of the fresh Labour Codes being implemented.

Meanwhile, sharing the company's growth outlook post Q3FY26 results, HUL noted that "macro stability coupled with supportive policy measures to foster a conducive backdrop for consumption."

The company expects FY’27 to be better than FY’26 led out of portfolio and channel transformation with a focus on driving competitive, volume-led revenue growth.

As of 12:41 pm, the shares of HUL were trading 1.56% lower at Rs 2,424.60 apiece, while NSE was trading 0.43% lower at 25,842.05 level.