HHL reported an EPS of LKR 5.07 for 3Q FY25 along with the PATMI growth of 36.3% YoY to LKR 3.1bn. Group topline grew by 6.4% YoY to LKR 33.2bn supported by growth across all segments. Along with an improvement in gross margins owing to stable commodity prices and exchange rates, EBIT margins grew to 14.0% (from previous 12.5%) supported by cost efficiencies and synergies. We expect positive volume growth in Consumer segment supported by greater consumer spending power whilst Atlas will continue as a strong contributor to the consumer performance. The widening branded generic portfolio, opportunities in contract manufacturing along with focus on a niche product mix is expected to drive higher margins from the Healthcare segment. Reflecting the positive spill over effects of economic recovery on a consumption boost, we upgrade our Target Price to LKR 134.00 (Previous TP of LKR 113). Recommendation: BUY