Hindustan Unilever Reports 2.4% Rise in Ad Expenditure for Q3 FY26

Hindustan Unilever Limited (HUL) disclosed its financial results for the third quarter ending December 2025, indicating a year-on-year increase of 2.4% in advertising and promotions expenditure, totalling ₹1,522 crore. This marks an increase from the ₹1,486 crore spent in the same quarter the previous year. However, the company's advertising expenses decreased by 6.7% compared to the previous quarter's ₹1,632 crore.

The financial report highlights a consolidated revenue growth of 6% for the third quarter of fiscal year 2026, with total earnings reaching ₹16,235 crore. Underlying sales growth (USG) stood at 5%, primarily due to a 4% increase in underlying volume growth (UVG). Additionally, the company reported earnings before interest, taxes, depreciation, and amortisation (EBITDA) of ₹3,788 crore, a rise of 3% from the previous year, while the EBITDA margin improved to 23.3%.

HUL's profit after tax (PAT) surged by 121% year-on-year, reaching ₹6,603 crore, significantly influenced by a one-time gain related to the demerger of its ice cream business. When excluding exceptional items, the PAT was recorded at ₹2,562 crore, representing a modest increase of 1%.

In terms of product categories, the Home Care segment demonstrated a 3% underlying sales growth supported by mid-single digit volume growth. While pricing reductions affected overall realisations, certain product areas in Fabric Wash experienced notable volume gains. This included solid performance in the liquids portfolio, which grew by double digits, alongside household care products like Vim liquid.

The Hair Care category also benefited from strong volume growth, led by premium brands such as Dove and TRESemmé. In Skincare and Colour Cosmetics, demand was robust for winter products, despite weaker sales in non-winter segments. Health & Wellbeing showcased impressive double-digit growth during this period.

HUL made significant advancements during this quarter, launching the TRESemmé Hydra Matrix and expanding the Minimalist skincare line with new toner and serum offerings. Priya Nair, Chief Executive Officer and Managing Director, remarked on the positive demand trends, noting signs of early recovery supported by favourable policy measures. She stated, 'Against this backdrop, we delivered a competitive performance, with 6% Revenue Growth and 4% Underlying Volume Growth.'

Furthermore, HUL announced two pivotal strategic changes in its Health & Wellbeing operations: the complete acquisition of Zywie Ventures, operating under the brand name OZiva, and the divestment of its 19.8% stake in Nutritionalab for ₹307 crores. These moves signify the company's focus on enhancing its portfolio while divesting less strategic investments.

The Personal Care segment reported a growth of 6%, with strong contributions from products like Pears and Dove. Meanwhile, the Oral Care line experienced double-digit growth, led by innovations in the Close Up range.

Foods also achieved a solid 6% USG, bolstered by a surge in volume across various categories. New product launches, such as the Kissan Great Indian Chutneys and Horlicks Superfoods, with a zero-added sugar variant, highlight HUL's commitment to expanding its offerings.

Hindustan Unilever remains a dominant player in the fast-moving consumer goods (FMCG) sector in India, consistently leading in home care, beauty, personal care, and food categories. The company's trajectory reflects ongoing adjustments to market demands and a strategic focus on core business growth.