Hindustan Unilever Limited (HUL) reported a significant surge in its performance for the December 2025 quarter (Q3 FY26), with consolidated net profit climbing **121%** to reach **₹6,603 crore**. This sharp increase was primarily fueled by an exceptional gain of **₹4,611 crore** following the demerger of its ice cream business. Total revenue from operations grew by **6%** year-on-year, standing at **₹16,580 crore**. The company achieved an underlying sales growth of **5%**, underpinned by a healthy **4%** increase in underlying volume. This volume recovery reached a multi-quarter high, signaling a steady rebound in consumer demand. Operational efficiency remained stable with EBITDA at **₹3,788 crore**, up **3%** from the previous year. While the EBITDA margin saw a slight contraction of **70 basis points** to **23.3%** due to new labor code provisions, it remained within the company's guided range. The Beauty & Wellbeing segment emerged as a top performer, delivering **11%** revenue growth. This was bolstered by the full acquisition of **OZiva** and the continued integration of **Minimalist**, which now contributes to a combined annual revenue run rate of **₹1,100 crore** in the premium wellness and skincare space. Strategic portfolio shifts have been central to this growth. HUL has sharpened its focus on high-growth digital channels, with Quick Commerce now accounting for approximately **3%** of the total business. The company also announced a complete exit from its minority stake in **Nutritionalab** to streamline its health and wellness bets. Management maintains a positive outlook for the remainder of the fiscal year, citing improving macroeconomic stability and supportive policy measures. Early signs of recovery in both rural and urban markets suggest a stronger performance in **FY27** compared to **FY26**. The Home Care segment continues to lead revenue contributions, achieving its highest-ever market share this quarter. High-single-digit volume growth across the Foods category and double-digit expansion in premium Hair Care brands like **Dove** and **TRESemmé** further reinforce the company’s competitive positioning. Market reaction on the NSE following the results saw the stock trading at approximately **₹2,400**, as investors balanced the massive one-time gains against a **30%** decline in core operating profit from continuing operations. Analysts maintain a long-term target in the range of **₹2,600** to **₹2,800**, supported by HUL's zero-debt balance sheet and consistent dividend payouts.