HUL shares decline 3% on muted Q2 business update due to GST 2.0 delays in spending

Hindustan Unilever's Q2 business update reveals a flat to low single-digit consolidated business growth for the quarter ending September 30, 2025, due to the transitory impact of GST rate rationalization. The company expects this impact to continue into October as well. Domestic brokerage firm JM Financial says that HUL has implemented high single-digit to low-double-digit price cuts across key beneficiary categories. HUL shares fell 3% to Rs 2,443 on the NSE.

Hindustan Unilever (HUL), one of India's leading consumer goods companies, has reported a flat to low single-digit consolidated business growth for the quarter ending September 30, 2025. The company attributed this performance to the transitory impact of the Goods and Services Tax (GST) rate rationalization implemented in September. HUL expects this impact to continue into October, according to its latest business update Hindustan Unilever shares down 2.7% on sales impact forecast^[1].

The GST reforms, which reduced taxes on a wide range of consumer goods, have led to a temporary sales hit in September. The company noted that the changes have caused disruptions at distributors and retailers, as they clear existing inventories with old prices. This has resulted in postponement of ordering and lower orders across the overall portfolio as consumers delayed their pantry buying HUL Sees Transitory Impact Due To GST Cuts, Expects ...^[2].

Despite the short-term impact, HUL remains optimistic about the long-term benefits of the GST reforms. The company expects recovery to start in November as prices stabilize, driven by rising disposable incomes and its ongoing portfolio transformation actions. Approximately 40% of HUL’s portfolio, including toilet soap, toothpaste, shampoo, and other products, now benefit from a reduced GST rate of 5% HUL Sees Transitory Impact Due To GST Cuts, Expects ...^[2].

Hindustan Unilever shares fell by 3% to Rs 2,443 on the National Stock Exchange (NSE) following the announcement Hindustan Unilever shares down 2.7% on sales impact forecast^[1]. The domestic brokerage firm JM Financial noted that HUL has implemented high single-digit to low-double-digit price cuts across key beneficiary categories to pass on the GST benefits to consumers.