HUL Q3 Results Preview: Margins May Rise to 24.8%, PAT Up Nearly 18% Amid Ice-Cream Demerger Impact

FMCG heavyweight Hindustan Unilever Ltd is all set to announce its Q3 FY26 results on February 12. This quarter is expected to be promising post-GST normalisation, festive demand recovery, margin movement, and volume growth trends. Ahead of the earnings, HUL share price today hovered near Rs. 2,430, up about 0.24%.

Revenue, EBITDA & PAT Expectations From Brokerages

According to Deven Choksy Research, HUL Q3 FY26 revenue is expected to be around Rs. 1,68,516 million, implying 6.5% year-on-year growth because of post-GST recovery and festive consumption. EBITDA is projected at Rs. 41,830 million, up 13.2% YoY.

The report also mentioned that Operating margin may expand 146 basis points to 24.8%, supported by benign input costs, easing crude derivatives, stable tea prices, and operating leverage. The Adjusted PAT could rise 17.9% YoY to Rs. 29,199 million, hinting at strong profitability recovery for HUL stock.

The brokerage has maintained a buy rating on HUL shares with a target price of Rs. 2,930, indicating nearly 20% upside from the current market price and positive sentiment toward this large-cap FMCG stocks.

Ice-cream demerger impact

HUL completed its ice-cream business demerger into Kwality Wall's India Ltd (KWIL) In December last year, with listing expected February 2026.

HUL Q3 FY26 is expected to be more measured, especially after adjusting numbers for the ice-cream business demerger. Nuvama Research in its report noted that the Like-to-like (LTL) revenue growth is expected at 3% YoY. the Underlying volume growth is seen at 2% YoY, with around 1% pricing growth.

Nuvama expected HUL's EBITDA to likely be flat YoY on a consolidated LTL basis. Meanwhile the Reported PAT growth may appear strong due to a one-off fair value gain from the ice-cream demerger.

Demand trends, GST transition and category outlook

Nuvama expects Q3 FY26 demand to improve slightly versus Q2, as GST-related disruptions normalised after November 10.
"Soaps and tea volumes may see healthy growth due to a weak base quarter. Winter pipeline loading was largely completed in Q2, meaning Q3 seasonal uplift could be limited. Some GST spillover impact may still persist early in the quarter. Low single-digit pricing growth is expected around 1% with price cuts in tea and home care but select price hikes in skincare due to commodity pressure." the report noted.

Recap of HUL Q2 FY26 performance

HUL Q2 FY26 results mainly showcased GST transition disruptions, with revenue rising about 1.5-2% and flat volume growth. The Home Care segment still posted mid-single-digit volume gains, supported by liquids and dishwash innovation.
On the structural front, GST rate cuts across nearly 40% of HUL's 1,200+ SKUs have already been fully passed through, while digital media now contributes over 50% of advertising spend.

Financially, net profit rose around 3.6% YoY to Rs. 2,685 crore, while revenue from operations stood near Rs. 16,388 crore. The company noted PAT growth was aided by a one-time tax-related benefit. EBITDA came in at about Rs. 3,729 crore, with EBITDA margin at 23.2%, down roughly 90 basis points YoY due to higher business investments.

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