New Delhi, Oct 23 (PTI) FMCG major Hindustan Unilever Ltd (HUL) on Thursday reported a 3.8 per cent rise in consolidated net profit at Rs 2,694 crore and sales was up 2.1 per cent in the September quarter of FY'26 with a "flat underlying volume growth" due to the transitory impact of GST changes and prolonged monsoon in parts of the country.

HUL, which owns popular brands such as Rin, Surf Excel, Lux, Horlicks etc had logged a net profit of Rs 2,595 crore in the July-September quarter a year ago.

The company's revenue stood at Rs 16,034 crore in the July-September quarter of this financial year, up from Rs 15,703 crore in the corresponding period a year ago, the company said in a regulatory filing.

It had a "consolidated Underlying Sales Growth (USG) of 2 per cent and a flat Underlying Volume Growth (UVG) in the September Quarter of 2025. Performance for the quarter reflected a transitory impact of GST changes and prolonged monsoon conditions in parts of the country," as per the HUL earnings statement.

During the quarter, the EBITDA margin stood at 23.2 per cent, which was lower by 90 bps year-on-year amidst higher investments in the business, said HUL, part of British multinational consumer goods company Unilever Plc.

HUL's profit before exceptional items and tax was down 4.8 per to Rs 3,386 crore in the second quarter of FY'26, as against Rs 3,558 crore of the corresponding quarter a year ago.

However, Profit After Tax grew by 4 per cent, primarily driven by one-off positive impact (Rs 184 crore) pursuant to resolution of prior years’ tax matters between UK and Indian tax authorities," it said.

HUL's total expenses in the September quarter were at Rs 12,999 crore, up 3.32 per cent.

Its total income, which includes other revenue, was up 1.5 per cent to Rs 16,388 crore.

"We delivered a competitive performance with an Underlying Sales Growth (USG) of 2 per cent and an EBITDA margin of 23.2 per cent in the quarter," HUL CEO and Managing Director Priya Nair said.

The latest GST reforms are a positive step by the government to drive consumption, expected to increase disposable income and improve consumer sentiment. However, the quarter saw a transitory impact as the market adjusted to these changes.

"We anticipate normal trading conditions starting early November, once prices stabilise, paving the way for a gradual and sustained market recovery," she said.

While sharing the segment revenue, the FMCG major said that in the September quarter, the revenue of Home Care, which is the leading division of HUL was down 1.16 per cent to Rs 5,664 crore.

However, HUL's Beauty & Wellbeing segment, with brands such as Lakme, Dove, Lux, and OZiva, reported a 9 per cent revenue growth to Rs 3,732 crore. The Skin Care and Health & Wellbeing delivered 5 per cent growth in revenue.

"However, turnover declined year-on-year due to the transitory impact of GST rate rationalisation. Skin Care, including Colour Cosmetics, grew by high single digits, driven by continued momentum in the Future Core and Market Makers portfolio, and a well-executed winter loading ahead of the season," it said.

HUL's revenue from Personal Care was flat at Rs 2,425 crore in the September quarter. It was at Rs 2,411 crore in the corresponding quarter.

According to HUL, the segment was "impacted by GST rate transition in the quarter".

HUL's revenue from food was up 1.73 per cent in the September quarter to Rs 3,869 crore. This was at Rs 3,803 crore in the corresponding July-September quarter a year ago.

The segment has a double-digit growth in beverages supported by overall performance amid softness in the Ice Cream and Lifestyle Nutrition segment, it said.

"Beverages (Tea and Coffee) grew in double-digits. Tea saw high single-digit growth driven by a healthy mix of price and volume. Coffee sustained its strong double-digit growth momentum," it said.

While ice cream turnover declined year-on-year due to prolonged monsoons in parts of the country, and the GST transition.

HUL's revenue from others, which includes exports, was down 1.6 per cent to Rs 551 crore in the September quarter of FY'26.

Looking ahead, Nair said that with a portfolio transformation and a supportive macroeconomic environment, she expects to accelerate volume-led growth in the mid-to-long term.

Meanwhile, in a separate filing, HUL said its board in a meeting held on Thursday, has declared an interim dividend of Rs 19 per equity share of face value of Re 1 each for FY'26.

Shares of HUL on Thursday were trading at Rs 2,617 apiece on BSE, up 0.95 per cent in the afternoon trade. PTI KRH DRR