Hindustan Unilever share price fell as much as 2.35 per cent to ₹2,453 apiece in Monday’s trading session after the company released weak Q2 business update on Friday.
HUL share price has descended over 5.53 per cent in a month, however, has gained 12.50 per cent in six months.
HUL Q2 business update
In its exchange filing, HUL mentioned that consolidated business growth for the September quarter is expected to remain flat to show only low single-digit growth year-on-year.
The company attributed this outlook to temporary disruptions in trade and distribution channels caused by the recent GST rate rationalisation announced earlier this month.
The revised GST rates, which lowered prices of several essential goods including FMCG products, came into effect on September 22.
“The latest GST reforms are a positive step by the Government to drive consumption. With the revised GST rates, approximately 40% of our portfolio including Toilet Soap, Toothpaste, Shampoo, Hair Oil, Talcum Powder, Lifestyle Nutrition and other Foods now benefit from a reduced GST rate of 5%, down from the previous GST rates of 12% or 18%,” the company said in the exchange filing.
HUL also expects this impact to spill over into October, the first month of Q3 of the current financial year, with a recovery likely beginning in November.
The company further said that that the measure supports long-term consumption, we have seen a transitory impact in the form of disruption at distributors and retailers across channels to clear existing inventories with old prices. “ This has resulted in postponement of ordering in anticipation of receiving new stocks with updated prices and lower orders across the overall portfolio as consumers delayed their pantry buying. This has led to a short-term impact on sales for the Company in September. Given our existing pipeline inventory in the channels, we expect this impact to continue into October as well,” it said.
“Due to the aforesaid context, we expect the consolidated business growth to be near flat to low-single digit for the quarter ending 30th September 2025, basis current view. This is a one-off, transitory impact, and we anticipate recovery starting November as prices stabilise, underpinned by rising disposable incomes and our ongoing portfolio transformation actions,” it added.
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