HUL Sees Near-Flat Q2 Growth Amid GST-Linked Disruption; Expects Recovery from November

Hindustan Unilever Ltd (HUL) on Friday issued an update ahead of its Q2 FY’26 results, scheduled for 23 October, flagging short-term disruption from the recent GST reforms. The government’s move to cut GST on nearly 40% of HUL’s portfolio — including soaps, shampoos, toothpaste, hair oils, talcum powder, lifestyle nutrition, and select food products — from 12–18% to just 5% has been termed a “positive step to drive consumption.” HUL said it has already passed on benefits to consumers through price cuts and value enhancements effective 22 September. However, trade partners are currently focused on liquidating old inventories, while consumers are deferring purchases in anticipation of lower prices. This has led to muted orders across channels. “We expect this impact to continue into October,” the company said, adding that consolidated growth for the September quarter will likely be flat to low single-digit. HUL expects recovery from November as new prices stabilize and disposable income improves, while portfolio transformation measures continue to support long-term demand momentum. Shares of HUL closed 1.04% lower at ₹2,511.80 on the NSE Friday. #HUL #GSTReforms #Consumption #FMCG #EarningsUpdate #Nifty50 #MakeInIndia