Hindustan Unilever Limited (HUL) on Friday issued an update on its operating context ahead of its Q2 FY’26 results, scheduled for release on 23 October.
The company said the recent GST reforms announced by the Government are a “positive step to drive consumption,” as revised rates have lowered GST on nearly 40% of HUL’s portfolio — including soaps, shampoos, toothpaste, hair oils, talcum powder, lifestyle nutrition, and other food products — from 12% or 18% to just 5%.
HUL said in a statement that it has already begun passing on these benefits to consumers through price reductions and value enhancements across its product range from 22 September. The reforms, it added, are expected to boost disposable income and drive long-term demand across categories.
However, the transition has caused a short-term disruption at the distributor and retailer level, as trade partners work to clear old inventories before stocking new products with updated prices. This has temporarily dampened orders across channels, with consumers also deferring pantry purchases in anticipation of lower prices.
“Given our existing pipeline inventory in the channels, we expect this impact to continue into October as well,” the company stated.
As a result, HUL has indicated that consolidated business growth for the September quarter will be near flat to low-single digit. It emphasized that this was a “one-off, transitory impact,” with recovery expected to set in from November once prices stabilise and disposable incomes rise.
HUL also reiterated that its ongoing portfolio transformation actions will continue to support demand momentum in the months ahead.
Hindustan Unilever shares fell as much as 1.04 % on Friday's to close at Rs 2,511.80 on the NSE. The stock is a constituent of the Nifty 50 index.
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