HUL sees near-flat Q2 growth on GST transition impact

Hindustan Unilever (HUL) on Friday said the latest Goods and Services Tax (GST) reforms are a positive step to drive consumption, with around 40% of its portfolio now benefiting from a reduced GST rate of 5% against the earlier 12-18%. The categories include soaps, toothpaste, shampoo, hair oil, talcum powder, lifestyle nutrition and foods.

The company said it has passed on the benefits to consumers through lower prices effective September 22. The GST reform is expected to drive long-term demand across key categories.

However, HUL flagged a short-term disruption in sales during September as distributors and retailers delayed orders to clear old inventory and consumers postponed purchases in anticipation of lower prices. The impact is likely to continue into October given existing pipeline inventory.

 

On this basis, HUL expects consolidated business growth for the quarter ending 30 September 2025, to be near "flat to low single digit". The company termed the impact as one-off and transitory, adding that recovery is expected from November as prices stabilise, supported by rising disposable incomes and ongoing portfolio transformation initiatives.

Shares of HUL fell 0.49% to settle at Rs 2498.45 today, 29 September 2025.

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