Hindustan Unilever Limited (HUL) reported a 30% year-on-year drop in net profit for the December quarter. The fall is mainly due to a one-off impact from labour code related charges. HUL’s operating margin before depreciation and amortisation (Ebitda margin) contracted by 70 basis points to 23.3%. Despite this, the margin stayed above the company’s guidance band of 22-23%, showing no stress from raw material prices or inventory management. Excluding the labour code charges and a one-time gain from selling its ice cream division, HUL's net profit rose slightly by 1%. The company's shares fell 2% on Thursday following the profit report. HUL is optimistic about the future. It expects the second half of the current fiscal, ending in March 2026, to perform better than the first half. The company also aims to report stronger numbers next year. This upbeat view is based on progress in portfolio and channel transformation, along with an improved macroeconomic environment that includes better consumer sentiment, rising rural demand, and growing urban traction. The FMCG major’s strategy to grow through acquisitions is paying off. Its buyout of Minimalist in January last year boosted its presence in the premium skincare market. Although sales of Minimalist are not disclosed separately, they are part of the beauty & wellbeing division, which grew the fastest among all categories. This division’s revenue rose 11% year-on-year and 5.3% sequentially. The beauty & wellbeing segment made up 24.2% of total revenue in December 2025, up from 20.8% in March 2025. HUL’s recent move to buy the remaining 49% stake in Zywie Ventures (Oziva) shows its commitment to expanding in new consumer segments for long-term growth.