Hindustan Unilever: ₹2,000-cr capex, Q3 FY26 cues

Why HUL is in focus

Hindustan Unilever Limited (HUL) has been in the news on multiple fronts, led by a board-approved investment plan to expand manufacturing capacity in premium categories. The company has also reported Q3 FY26 results showing revenue and volume growth, alongside portfolio actions in health and wellbeing.

Brokerages have reiterated positive calls in recent research notes, while management has signalled a sharper push on volume-led growth and premiumisation. The stock has also seen notable market activity, including a large block trade on the NSE.

Board clears ₹2,000 crore capacity expansion

HUL’s board approved an investment of ₹2,000 crore to expand manufacturing capacity over two years. The plan targets fast-growing premium segments across Beauty & Wellbeing and Home Care, including premium skin care, hair care, personal care, and home care liquids.

The company said the expansion will be executed across multiple locations. It also plans to integrate advanced automation and digital technologies into these facilities to improve supply chain efficiency and responsiveness.

As per the company’s communication, all new facilities under this plan will operate on 100% renewable energy.

Management commentary: growth, premiumisation, and margins

CEO and Managing Director Priya Nair described growth as the “number one priority,” with the company looking to double down on volume and premiumisation. The company has also highlighted increased e-commerce exposure as part of its approach.

CFO Niranjan Gupta has said HUL expects EBITDA margins to remain within the guided range of 22% to 23%.

Separately, Unilever CEO Fernando Fernandez has described India as an “anchor market” and reiterated an intent to double down on beauty and wellness segments, aligned with premiumisation.

Q3 FY26 results: growth with one-off impacts

For the quarter ended 31 December 2025 (Q3 FY26), HUL reported 6% revenue growth and 4% underlying volume growth, described as its highest volume growth in 12 quarters. Underlying sales growth was reported at 5%.

EBITDA stood at ₹3,788 crore with an EBITDA margin of 23.3%. Profit after tax (PAT) before exceptional items was ₹2,562 crore, up 1% year-on-year, while reported PAT was ₹6,603 crore, up 121%, reflecting one-off impacts linked to the ice cream demerger and valuation adjustments.

Management guided that FY27 is expected to be better than FY26, supported by improving macro conditions and internal initiatives.

Portfolio moves: OZiva stake buy and Nutritionalab exit

HUL’s board approved acquiring the remaining 49% stake in Zywie Ventures for ₹824 crore to strengthen its “health and wellbeing” business. In the same set of portfolio actions, HUL divested its minority stake in Nutritionalab for ₹307 crore.

A subsequent regulatory update said HUL completed the sale of its entire 19.8% shareholding in Nutritionalab Private Limited for approximately ₹307 crore.

Ice cream demerger: record date and expected listing

HUL’s ice cream business has been separated through a demerger into Kwality Wall’s (India) Limited (KWIL). The record date was set as 5 December 2025, and the demerger was scheduled to be effective 1 December 2025. KWIL was expected to list in February 2026.

In a separate disclosure track, HUL has also obtained NCLT approval for the ice cream business demerger.

Other disclosures: tax order, employee options, LIC stake

HUL received an income tax assessment order of ₹1,559.69 crore for FY2021-22. The company said the order will have no material impact on operations and indicated it plans to file an appeal.

The company also granted 2,69,514 stock options under its Performance Share Plan Scheme 2024, as approved by the Nomination and Remuneration Committee.

On shareholding, Life Insurance Corporation of India (LIC) disclosed an increase in its stake in HUL to 6.74% from 4.73%, through the acquisition of 4.72 crore shares via open market purchases between March 2022 and January 2026.

Recent sales snapshot and Q2 demand concerns

HUL reported consolidated net sales of ₹16,241 crore for September 2025, up 1.98% year-on-year. Standalone net sales for the same period were ₹15,585 crore, up 0.5% year-on-year.

Ahead of Q2 FY26 results, a preview note pointed to muted performance, citing flat sales and margin pressure due to the temporary impact of a GST rate cut and channel disruptions.

Brokerages: target prices cluster around ₹2,600 to ₹2,900

Multiple research notes cited in the news flow have maintained constructive views on HUL, with a mix of “buy” and “accumulate” stances.

• Motilal Oswal: Buy, target price ₹2,800 (research report dated 12 February 2026)
• Prabhudas Lilladher: Accumulate, target price ₹2,609 (research report dated 12 February 2026)
• Jefferies: Buy, target price ₹2,850 (2 April 2026)
• Anand Rathi: Buy, target price ₹2,910 (research report dated 24 October 2025)

Stock and market data points mentioned

The stock was quoted at ₹2,243.30, up 4.87%, with market capitalisation of ₹5,27,083.81 crore and a PE ratio of 34.57 (industry: FMCG), as per the provided snapshot.

Separately, the stock was reported trading at ₹2,329.20 at 9:33 AM on 19 February 2026, up 0.25% from the previous close, while being down 3.15% over the past month. Performance metrics in the snapshot also showed: 1M +3.11%, 6M -10.97%, 1Y -3.64%, and 5Y -7.25%.

A large block trade was also reported on the NSE worth ₹71.16 crore, involving 3,31,654 shares at ₹2,145.70 per share.

Key numbers at a glance

Market impact: what the updates change for investors

The ₹2,000 crore capex plan is tied directly to premium categories where the company is signalling stronger focus, including Beauty & Wellbeing and Home Care liquids. Management has also linked the plan to a more technology-enabled supply chain through automation and digital integration.

Q3 FY26 results added to the narrative, with 4% underlying volume growth and an EBITDA margin of 23.3%, within the company’s guided band. But reported profitability included one-off items tied to corporate actions, so the underlying trend has been highlighted through pre-exceptional PAT and operational metrics.

The combination of portfolio changes in health and wellbeing (OZiva) and the exit from Nutritionalab points to ongoing reshaping of non-core positions. Alongside this, the tax order disclosure and LIC’s stake increase provide additional data points for institutional and retail investors tracking governance, risk items, and ownership.

Analysis: why the story matters

HUL’s announcements cluster around two linked themes: premiumisation and portfolio sharpening. The investment into premium capacity and management commentary around beauty, wellness, and e-commerce are aligned with that direction.

At the same time, the company’s stated EBITDA margin guidance of 22% to 23% sets a tight boundary for how it balances growth and investments. With Q2 commentary suggesting GST-linked disruptions and margin pressure, the FY26 base becomes important for how investors interpret FY27 guidance.

Brokerage targets cited range from ₹2,609 to ₹2,910, indicating broad optimism but with variation in valuation comfort. Near-term trading has also been influenced by corporate actions like the ice cream demerger and notable market transactions such as the ₹71.16 crore block trade.

Conclusion

HUL’s ₹2,000 crore expansion plan, Q3 FY26 operational improvement, and portfolio moves around OZiva and Nutritionalab have kept the stock in focus for both earnings and strategy watchers. Management has reiterated its emphasis on volume-led growth and premiumisation while keeping margins within guidance.

The next set of catalysts mentioned in the flow include the continuing execution of the two-year capex plan, follow-through on FY27 performance commentary, and ongoing disclosures tied to corporate actions and regulatory matters.